Question

When consisidering inventory​ models, costs related to incoming

inspection and receiving should be included​ in:
A. Carrying Costs
B. Transportaion Costs
C. Holding Costs
D. Quality Costs
E. Order

Answer 1

Incoming inspection and receiving costs are included in Carrying Costs, which involve all expenses related to holding inventory, including quality assurance processes.

Step-by-step explanation:

When considering inventory models, costs related to incoming inspection and receiving are typically included in Carrying Costs. Carrying costs, also known as holding costs, encompass various expenses associated with holding inventory, including storage costs, insurance, taxes, depreciation, and obsolescence. Incoming inspection and receiving costs are part of the quality assurance process that ensures inventory meets the company's required standards. These activities require resources, such as labor and equipment, which add to the total cost of maintaining inventory.