All else the same, ________ costs are greatest when the firm holds a small quantity of inventory, and ___________ costs are greatest when there is a large quantity of inventory on hand.

A) Carrying; interest.
B) Opportunity; restocking.
C) Restocking; carrying.
D) Carrying; restocking.
E) Interest; carrying.

Restocking Costs

Expenses associated with replenishing inventory or stock levels in a business, including purchasing, shipping, and handling costs.

Carrying Costs

The aggregate amount spent on inventory upkeep, which covers costs related to storage, insurance premiums, and tax payments.

Opportunity Costs

The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.