Carrying cost, Business Management

Also known as the loading cost or the storage cost carrying cost represents the cost that is associated with storing an item in inventory. It is proportional to the amount of inventory and the time over which it is held. The elements of carrying cost include the opportunity cost capital invested in the stock the costs directly associates with storing goods ( like stores men salary rates heating and lighting , racking and pellet is action protective clothing store transport etc,) the obsolescence cost( including scraping and possible rework) deterioration costs and costs incurred in preventing deteriorations and fire and general insurance etc.

Posted Date: 3/26/2013 2:47:03 AM | Location : United States

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