Which of the Following Is Not Considered a Holding Cost

question 36

Multiple Choice

Which of the following is not considered a holding cost?

• A)Interest
• B)Insurance
• C)Depreciation
• D)Opportunity cost
• E)Stockout cost

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Definitions:

Acquisition Differential

The difference between the cost of an acquisition and the fair value of net assets acquired, often recognized as goodwill on the balance sheet.

Patents

Legal rights granted by a government to an inventor for a limited time, giving exclusive rights to manufacture, use, or sell an invention.

Acquisition Differential

The difference between the purchase price of an acquired company and the book value of its net assets.

Acquisition Differential

The difference between the cost of the acquisition and the fair value of the net assets acquired in a business combination.