Which Cost Would Not Be Considered Part of a Holding

question 54

Multiple Choice

Which cost would not be considered part of a holding cost?

• A) cost of capital
• B) shipping cost
• C) insurance cost
• D) warehouse overhead

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Definitions:

Distributor Warehouse

A facility used by a distributor for storing goods prior to their distribution to retailers, wholesalers, or end users.

In-Transit Merge

The process of combining different shipments en route, typically at a hub, to improve transportation efficiency and reduce costs.

Drop-Shipping

A retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

Manufacturer/Distributor Storage

Facilities used by manufacturers or distributors for the warehousing of products before they are distributed to retailers or customers.