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Annual cost to hold excess goods in order to avoid any chance of running out of inventory is $50,000. what kind of cost can you describe this cost?

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تم إضافة السؤال من قبل Ahmed kandil , Cost Controller , Battour Holding Cpompany
تاريخ النشر: 2015/03/04
Mir Mujtaba Ali
من قبل Mir Mujtaba Ali , Internal Audit Manager , Confidential

Carrying cost, it also include the opportunity costs associated with inventory and storage cost

aziz urrehman
من قبل aziz urrehman , key account executive , alkhair group of companies foam manufacturing

 

Variable cost ,becuase if you need to increase production then you should have to incrase variabel cost.

Khurram Shaukat Memon
من قبل Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

I guess it can be described as Holding cost of inventory.

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