Which One of the Following Is Not an Inventory Carrying

question 2

Multiple Choice

Which one of the following is not an inventory carrying cost?

• A) Insurance expense for the inventory
• B) Opportunity cost of capital for inventory investment
• C) Cost of inventory
• D)Cost of shelf space

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Definitions:

Servicing Cost

The costs associated with maintaining and repairing products or equipment, contributing to the total cost of ownership.

Just-In-Time (JIT)

An inventory management system that aligns raw-material orders from suppliers directly with production schedules, aiming to reduce inventory costs and increase efficiency.

Quality Control

The process of ensuring that products and services meet specified standards of quality through testing and inspections.

Lot Sizes

Lot sizes refer to the quantity of items grouped together for manufacturing or purchasing purposes, affecting production planning and inventory management.