The total costs of a material usually consist of: Total acquisition cost+ total ordering cost + total carrying cost. WHAT CONSTITUTE CARRYING COSTS?

Carrying costs usually pertains to storage costs. 

the cost of holding an item for one year x the number of items ordered per shipment /2

Good answer already given by Mr Mir

Storage building rent, Insurance, normal wastage during storage etc

Thank km to callBut unfortunately question needy clarify more

Agreed with the answer Mir Mujtaba Ali

........................Agree with the answers

The cost of holding the materials in the store for uninterrupted requirements of materials is termed as "carrying costs" and include the following:-

1. the utilization  cost of storage space for the materials.

2. the utilization cost of bins and racks.

3. the expenses incurred for protecting from deterioration of materials.

4. the cost of the funds made available for building stock.

5. the materials handling charges at the store.

6. the cost of spoiled items.

7. the transportation costs of the materials stored.

8. cost of obsolescence of materials due to change in the process or the product.

9. insurance costs of the stock of materials.

10. clerical costs at the store.

I AGREE WITH MISS LESELY ANSWER  

The cost to carry inventory measures the overhead that an organization carries to support its inventory. Carrying cost is usually expressed as a percentage that represents the cents per dollar that will be spent on inventory overhead per year.

Purchase cost + any other costs incurred by the goods until they reach the store