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Little Timmy says, "Boys are cool and girls are stupid." Timmy's statement reflects the heart of what is meant by the term:
Carrying Costs
Expenses incurred by a company for holding inventory over a period of time.
Ordering Costs
The expenses associated with placing and receiving orders for inventory, including costs related to processing, shipping, and handling.
Accounts Receivable
Receivables from customers for goods or services already supplied by the company but payment has not been made.
Accounts Payable
Liabilities to creditors, representing the obligation to pay for goods and services received, usually within a short period of time.
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