Final answer:
In the strategic profit model, inventory-related storage and handling costs are classified as indirect expenses. These costs are necessary for the operations of a business and do not directly relate to the production of goods, hence not fitting the categories of direct expenses, cost of goods sold, or accounts receivable.
Step-by-step explanation:
In the strategic profit model, inventory-related storage and handling costs are generally considered as indirect expenses. These costs, while not tied directly to the production of goods, are necessary for the overall operations and include the costs of storage facilities, utilities, and personnel responsible for handling the inventory. Such expenses do not fall under direct expenses, which are directly associated with the production of goods, nor under the cost of goods sold, which primarily includes the direct costs of materials and labor used to create the product. Inventory-related costs are also not accounted for under accounts receivable, which refers to the money owed to a company by its customers for goods or services delivered.
Understanding the distinction between explicit and implicit costs is essential in accounting. Explicit costs are actual out-of-pocket expenditures, such as wages and rent, while implicit costs represent the opportunity cost of using resources that a firm already owns, such as the owner's time or the use of space. Inventory handling costs are an important consideration for businesses as they affect the overall profitability and efficiency, which are critical components of the strategic profit model.