A firm calculates that its annual cost to hold excess goods in order to avoid any chance of running out of inventory is $50,000.

This $50,000 is an example of A. Prime cost. B. Quality cost. C. Carrying cost. D. Stockout cost.

Question added by Deleted user
Date Posted: 2015/01/10

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by Mobeen Tahir , Credit Officer , Tawuniya Insurance

The Carrying cost id the right answer.

by Ani Kuriakose , Managing Partner – SCM , A. A. Associates

Cost to hold goods to avoid inventory stockout is Holding/Carrying cost

by Muhammad Salman Akram Maan , Accountant , Bismillah Textiles Limited

Its C. Carrying Cost Because company has to engage warehouse space for this excess inventory.

by Ahmer Zamir , Consultant , Saleem Associates & Co

The Correct option is C) The Carrying Cost

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