Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 20 - Inventory Management, Just-in-Time, and Simplified Costing Methods - Assignment Material - Questions - Page 794: 20-4

Answer

Carrying costs of inventory in the EOQ model include expenses like storage, insurance, interest, obsolescence, handling, labor, taxes, depreciation, and spoilage costs. These costs represent the ongoing expenses associated with holding and managing inventory and impact the economic order quantity calculation.

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