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Which one of the following would not be considered a carrying cost associated with inventory?
Suggested Answer: D
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Choice 'd' is correct. Shipping costs (which are selling costs) would not be considered a carrying cost associated with inventory.
Choices 'a', 'b', and 'c' are incorrect. Each of the following would be considered a carrying cost associated with inventory.
A Insurance costs.
B Cost of capital invested in the inventory.
C Cost of obsolescence.
26 comments · newest first
KA
Karan
10 months ago
Cost of capital is a big one too, can't forget that!
SH
Shelba
11 months ago
Yup, insurance and obsolescence are definitely carrying costs.
FE
Felicidad
11 months ago
Wait, are shipping costs really not included? That seems off.
TA
Tamekia
11 months ago
Totally agree, it's more about holding costs.
LI
Lili
11 months ago
Shipping costs are usually not considered carrying costs.
CR
Cruz
12 months ago
I feel like I’ve seen similar questions before, and shipping costs often come up as operational costs rather than carrying costs.
MA
Maybelle
12 months ago
I’m a bit confused because I thought all these costs were related to holding inventory. Is shipping really not a carrying cost?
AL
Aleisha
12 months ago
I remember practicing a question where shipping was considered a separate expense, so I’m leaning towards D as the answer.
VE
Verdell
1 year ago
I think carrying costs usually include things like insurance and obsolescence, but I'm not sure about shipping costs.
LI
Lina
1 year ago
Okay, let me see if I can work this out. Carrying costs are the expenses associated with holding inventory, so things like insurance, storage, and the opportunity cost of the capital invested. I'm pretty sure shipping costs wouldn't be considered a carrying cost, so I'll go with that.
TR
Tracie
1 year ago
Hmm, I'm a little unsure about this one. I know carrying costs include things like insurance, storage, and the cost of capital, but I'm not totally sure which one wouldn't be considered a carrying cost. I'll have to think this through carefully.
EM
Emile
1 year ago
This seems like a pretty straightforward question. I think the key is to identify the carrying costs associated with inventory and then determine which one would not be considered a carrying cost.
EL
Elizabeth
1 year ago
I feel pretty confident about this one. Shipping costs are not a carrying cost, they're a distribution cost. The carrying costs are the expenses incurred from actually holding the inventory, like insurance, obsolescence, and the cost of capital. I'll select D.
LA
Laura
1 year ago
Okay, I think I've got a strategy here. I'll create the two WildFire rules first, one for notification and one for prevention. Then I'll use a condition based on the application found on Accounting machines to target just that department, and leave the Sales rule without any conditions so it applies broadly.
RO
Roosevelt
1 year ago
This question seems straightforward. I think the main purpose of a management review is to monitor progress and make decisions about future actions, so I'll go with option D.
AN
An
1 year ago
Hmm, this looks like a tricky one. I'll need to carefully review the resources listed and think about which ones Azure Security Center can provide vulnerability assessments for.
JU
Junita
1 year ago
Okay, let's see. We have three separate remote sites, each with different needs - one needs MOH and MCU, another needs MOH and treatment, and the third needs MOH and recording. I'm not sure if we can consolidate these or if we need a separate media server for each.
YV
Yvonne
1 year ago
This looks like a complex security architecture question, but I think I can tackle it. The key seems to be finding a way to allow Service B to access the services in Service Inventory B without compromising the security of that private network. The Service Perimeter Guard pattern combined with Brokered Authentication sounds like a good approach.
MA
Martha
2 years ago
Hmm, you may be right. It does make sense to consider the cost of capital invested in the inventory as a carrying cost.
ZA
Zachary
2 years ago
I'm not sure, but I think B) Cost of capital invested in the inventory is also a carrying cost.
RU
Rupert
2 years ago
I disagree, I believe it's C) Cost of obsolescence.
MA
Martha
2 years ago
I think the answer is D) Shipping costs.
MI
Micaela
2 years ago
Hmm, you may be right. It does make sense to consider the cost of capital invested in the inventory as a carrying cost.
AM
Amie
2 years ago
I'm not sure, but I think B) Cost of capital invested in the inventory is also a carrying cost.
UL
Ulysses
2 years ago
I disagree, I believe it's C) Cost of obsolescence.
MI
Micaela
2 years ago
I think the answer is D) Shipping costs.