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?

Question

Mir Mujtaba Ali · Answer

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

aziz urrehman · Answer

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

Khurram Shaukat Memon · Answer

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