Tag Archives: Inventory Costs

  • Inventory Costs

    Posted on February 2, 2012 by admin in Operations.

    There are two basic types of costs associated with current assets. Carrying costs Shortage costs Carrying costs Carrying costs represent all of the direct and opportunity costs of keeping inventory on hand. These include: Storage and tracking costs Insurance and taxes Loss due to obsolescence, deterioration, or theft The opportunity cost of capital on the […]

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