Question

Inventory carrying costs include all of the following except:

a. clerical cost of ordering goods
b. opportunity cost of investment funds
c. insurance costs
d. obsolescence and deterioration

Answer 1

Inventory carrying costs include various expenses associated with holding and maintaining inventory, but obsolescence and deterioration costs are not considered inventory carrying costs. Therefore, the correct option is D.

Step-by-step explanation:

Inventory carrying costs include various expenses associated with holding and maintaining inventory. These costs can affect a company's profitability and cash flow. The correct answer is d. obsolescence and deterioration. These costs are not considered inventory carrying costs. Clerical costs, opportunity costs of investment funds, and insurance costs are all examples of expenses that can be incurred when carrying inventory. Obsolescence and deterioration costs refer to the decrease in the value or usability of goods over time.