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:

Stated Interest Rate

The interest rate declared on a bond or loan agreement, not necessarily reflecting the market interest rate or effective interest rate.

Present Value

The current worth of a future sum of money or stream of cash flows, discounted at a specific rate.

Actuarial Information

Data and calculations used by actuaries to assess risks and determine premiums or forecasts for insurance and other industries.

Bond Issuance

The process by which a borrower issues bonds to lenders or investors in order to raise capital, involving agreements to repay the borrowed amount plus interest.