All of the Following Are Examples of Carrying Costs EXCEPT

question 128

Multiple Choice

All of the following are examples of carrying costs EXCEPT:

• A)rental payments on storage facility where inventory is maintained.
• B)the lost sale if the company runs out of a particular model.
• C)the opportunity costs associated with having capital tied up in current assets instead of more productive fixed assets.
• D)All of these are examples of carrying costs.

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Definitions:

Efficiently

Achieving a goal or producing output with the minimum amount of waste, expense, or unnecessary effort.

Common Resource

A resource like air or water that is accessible to all but is susceptible to overuse and depletion because it is not privately owned.

Public Good

Goods or services that are made available to the entire society for free, by the government or a private organization or individual, not aimed at generating profit.

Common Resource

A type of good that is rivalrous but non-excludable, meaning its use by one individual diminishes its availability for others, but no one can be effectively excluded from using it.