[amp_mcq option1=”carrying costs” option2=”purchasing costs” option3=”stock-out costs” option4=”ordering costs” correct=”option1″]<\/p>\n
The correct answer is A. carrying costs.<\/p>\n
Carrying costs are the costs associated with holding inventory. They include the costs of storage, insurance, obsolescence, and depreciation.<\/p>\n
Purchasing costs are the costs associated with acquiring inventory. They include the costs of the goods themselves, as well as the costs of transportation, receiving, and inspection.<\/p>\n
Stock-out costs are the costs associated with not having enough inventory to meet customer demand. They include the costs of lost sales, customer dissatisfaction, and damage to the company’s reputation.<\/p>\n
Ordering costs are the costs associated with placing an order for inventory. They include the costs of preparing the order, the costs of shipping the order, and the costs of receiving the order.<\/p>\n
Here is a table that summarizes the different types of inventory costs:<\/p>\n
| Type of cost | Description |
\n| — | — |
\n| Carrying costs | The costs associated with holding inventory. They include the costs of storage, insurance, obsolescence, and depreciation. |
\n| Purchasing costs | The costs associated with acquiring inventory. They include the costs of the goods themselves, as well as the costs of transportation, receiving, and inspection. |
\n| Stock-out costs | The costs associated with not having enough inventory to meet customer demand. They include the costs of lost sales, customer dissatisfaction, and damage to the company’s reputation. |
\n| Ordering costs | The costs associated with placing an order for inventory. They include the costs of preparing the order, the costs of shipping the order, and the costs of receiving the order. |<\/p>\n","protected":false},"excerpt":{"rendered":"
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