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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
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
