Which of the Following Factors Is (Are)not Included in Carrying

question 51

Multiple Choice

Which of the following factors is (are) not included in carrying cost?

• A)spoilage
• B)obsolescence
• C)cost of capital
• D)inspecting incoming inventory
• E)warehousing overhead costs

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Definitions:

Economic Profits

The difference between total revenue and total economic costs (including both explicit and implicit costs), representing surplus or profit not achievable in perfect competition.

Competitive Industries

Industries characterized by many firms competing for market share, leading to innovation and efficient resource allocation.

Production Costs

Expenses incurred during the process of creating a good or service, including labor, raw materials, and overhead costs.

Decreasing-Cost Industry

An industry in which expansion through the entry of firms lowers the prices that firms in the industry must pay for resources and therefore decreases their production costs.