Which of the Following Would Not Be Included in Holding

question 15

Multiple Choice

Which of the following would not be included in holding cost?

• A) Cost of capital
• B) Cost of physically storing the inventory
• C) Cost of manufacturing
• D) Cost that results from the product becoming obsolete

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Definitions:

Outstanding Cheques

Cheques that have been written and recorded in the accounting records but have not yet been cashed or cleared through the banking system.

Uncollected Deposits

Funds that have been deposited into a bank account but have not yet been cleared or recognized as available balance due to processing time.

Float

The difference between book cash and bank cash, representing the net effect of cheques in the process of clearing.

Interest Rate

The percentage charged on a loan or earned on an investment, indicating the cost of borrowing or the gain on investing.