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<p><em><strong>This $50,000 is an example of </strong></em></p> <p><em><strong>A. Prime cost. </strong></em></p> <p><em><strong>B. Quality cost. </strong></em></p> <p><em><strong>C. Carrying cost.</strong></em></p> <p><em><strong>D. Stockout cost.</strong></em></p>
The Carrying cost id the right answer.
Cost to hold goods to avoid inventory stockout is Holding/Carrying cost
Its C. Carrying Cost Because company has to engage warehouse space for this excess inventory.
The Correct option is C) The Carrying Cost
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