Asked by Mojeed George on Jul 04, 2024
Verified
Inventory carrying cost includes transportation costs paid by the purchaser.
Transportation Costs
Expenses incurred in the process of moving goods from one location to another, including freight, shipping, and handling fees.
Inventory Carrying Cost
The total cost associated with holding and storing unsold goods, including storage, insurance, and opportunity costs.
- Recognize the elements and importance of the costs associated with carrying inventory.
Verified Answer
AL
Alexa LaurenJul 07, 2024
Final Answer :
True
Explanation :
Transportation costs paid by the purchaser are a part of the inventory carrying cost. This cost includes all the expenses associated with storing and carrying inventory, such as warehouse rent, insurance, taxes, and handling fees.
Learning Objectives
- Recognize the elements and importance of the costs associated with carrying inventory.