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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?

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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/04
Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

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

aziz urrehman
by aziz urrehman , key account executive , alkhair group of companies foam manufacturing

 

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

Khurram Shaukat Memon
by Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

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

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