Which of the following does not belong to holding costs [Solved]

Please leave the answers in bold. Please leave the answers in bold. 
Which of the following does NOT belong to holding costs O A. storage costs B. pilferage, scrap, and obsolescence O C. insurance on inventory D. order processing Which of the following does NOT belong to holding costs O A. storage costs B. pilferage, scrap, and obsolescence O C. insurance on inventory D. order processing

Ans: D. order processing
Order processing does not belong to holding costs.
Holding costs are the cost associated with storing of goods. It
is also known as carrying cost. Holding cost includes costs like:
warehouse rent, insurance of goods, salaries and utilities,
financial costs such as cost related to perishability, shrinkage,
etc.
Holding Costs includes:
A. Storage costs:
Storage cost is the money incurred in storage of goods in the
warehouse, rent, electricity, etc.
B. Pilferage, scrap and obsolescence:
Pilferage cost means cost due to the action of stealing goods.
Obsolescence cost occurs as goods sometimes become obsolete before
it is sold.
C. Insurance on inventory:
Insurance refers to getting protection of the goods from theft,
damage, etc. By getting insurance one can cover the damages caused
during transportation, storage, etc.

This post is last updated on hrtanswers.com at Date : 1st of September – 2022

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