Logistics, Book 1, Unit 12, Inventory Costs

The company doesn’t make new investments. Instead, they prefer to earn some ----- by putting their cash into the bank

• obsolescence
• interest
• insurance
• depreciation

"-----" includes expenses involved in purchasing and sourcing.

• Handling cost
• Inspection cost
• Acquisition cost
• Carrying cost

It's important for a company to buy ----- in order to protect its assets

• material overhead cost
• interest
• storage cost
• insurance

The ----- cost includes expenses incurred checking items upon arrival, during storage and before shipping.

• inspection cost
• carrying cost
• handling cost
• storage cost

"-----" includes all expenses involved in purchasing, handling, storing and transporting materials.

• Storage cost
• Material overhead cost
• Carrying cost
• Inspection cost

Apple launches new model of I phone every year. People are worried about ----- and try to buy the newest models each time.

• obsolescence
• depreciation
• interest
• handling costs

"-----" is the total cost of holding assets and it includes the cost of storage, maintenance, insurance and some other costs.

• Storage cost
• Acquisition cost
• Carrying cost
• Material overhead cost

Loss of value because of damage during storage is called -----.

• interest
• obselescence
• insurance
• depreciation

"-----" includes expenses related to storage, warehouse space, security and maintenance.

• Inspection cost
• Storage cost
• Handling cost
• Carrying cost

Moving materials from one place to another is related to -----.

• handling cost
• inspection cost
• acquisition cost
• storage cost