Which of the Following Costs Is a Relevant Inventory Carrying

question 127

Multiple Choice

Which of the following costs is a relevant inventory carrying cost of carrying inventory?

• A) The lost contribution margin on future sales forgone as a result of customer dissatisfaction in product quality.
• B) The lost contribution margin on sales forgone because of the shortage of inventory.
• C) The costs of storage space owned that cannot be used for other profitable purposes when inventories decrease.
• D) The costs of shrinkage.

---

Definitions:

Economic Growth

An increase in a country's output of goods and services, usually measured by GDP growth.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Foreign Investment

Capital investment made by individuals or entities of one country in the assets or enterprises of another country.

State Industries

Industries owned, operated, and managed by the government of a country.