Asked by Smooth Deion on Jul 12, 2024
Verified
Which of the following is not a cost of carrying inventory?
A) Breakage and theft
B) Obsolescence
C) Financing and storage costs
D) Slower inventory turnover
Inventory Turnover
A ratio showing how many times a company has sold and replaced inventory over a certain period of time, indicating the efficiency of inventory management.
Financing Costs
Expenses associated with raising capital through debt or equity.
Obsolescence
The process of becoming outdated or no longer used, often due to technological advances.
- Investigate the principles of inventory management pertinent to financial management, covering topics such as EOQ and the expenses associated with maintaining inventory.
Verified Answer
EV
Emily VargasJul 12, 2024
Final Answer :
D
Explanation :
Slower inventory turnover is a consequence of having too much inventory, not a direct cost of carrying it. Costs of carrying inventory typically include breakage and theft, obsolescence, and financing and storage costs.
Learning Objectives
- Investigate the principles of inventory management pertinent to financial management, covering topics such as EOQ and the expenses associated with maintaining inventory.
Related questions
All of the Following Are Components of Carrying Costs Except ...
When Sales Rise,inventory as a Percentage of Sales May Also ...
The Inverse Relationship That Exists Between the Cost of Lost ...
As the Dollar Value of a Product Decreases, Its Inventory ...
A(n) _____ Relationship Exists Between the Cost of Lost Sales ...