question_answer

Consider the following costs:

1. Cost of inspection and return of goods

2. Cost of obsolescence

3. Cost of scrap

4. Cost of insurance

5. Cost of negotiation with suppliers.

Which of these costs are related to inventory carrying cost?

A) 1, 2 and 3                     

B) 1, 3 and 4

C) 2, 3 and 4                     

D) 2, 4 and 5