Multiple choice

Directions: Choose the correct option and complete the sentence.

Carrying cost is otherwise called

  1. ordering cost

  2. out of stock cost

  3. holding cost

  4. expired cost

  5. idle cost
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Carrying cost, also known as holding cost, refers to the total cost of storing inventory over a specific period. This includes expenses like warehousing, insurance, and the opportunity cost of capital tied up in stock.

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