Question

The cost of insurance and taxes are included: a. set up cost b) cost of shortages c) inventory carrying cost d) cost of ordering

Answer 1

The cost of insurance and taxes are included:

Option c : Inventory carrying cost

Explanation

Inventory carrying cost is the cost the sum of expenses for handling or storing any unsold goods. These costs incorporate warehousing, labor, insurance, rent, combined with the value of damaged, expired, or out-of-date products. The carrying cost of inventory will depend on your products and storage needs, your total number of SKUs, your location, your inventory turnover rate, and whether you keep fulfillment in-house or outsource it.