Which of These Is Not a Cost of Holding Inventory

question 38

Multiple Choice

Which of these is not a cost of holding inventory?

• A)ordering costs
• B)lost sales
• C)storage costs
• D)deterioration and obsolescence

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Definitions:

Machine-Hours

A measure of the amount of time machines are used in the production process, often used to allocate manufacturing overhead costs.

Machining Department

A division within a manufacturing facility where machines are used to process materials into finished products.

Finishing Department

The section in a manufacturing process where products receive final modifications and packaging before being released for sale.

Finishing Department

A section within a manufacturing operation where products undergo final processing, treatments, or coatings before being ready for sale.