Which of the following costs is an example of a specific inventory carrying cost?
Which of the following costs is an example of a specific inventory carrying cost?
Shrinkage refers to the loss of inventory that can occur due to factors such as theft, damage, misplacement, or obsolescence. This cost is directly associated with maintaining and carrying inventory and is, therefore, an example of a specific inventory carrying cost.
Why not A ?
Shrinkage refers to the loss of inventory that can occur due to factors like theft, damage, misplacement, or obsolescence. It is a direct cost associated with maintaining and carrying inventory.
C is correct
D is reasonable