The Cost of Insurance and Taxes are Included A)Set up cost B)Cost of shortages C)Inventory carrying cost D)Cost of ordering

Question: The Cost of Insurance and Taxes are Included A)Set up cost B)Cost of shortages C)Inventory carrying cost D)Cost of ordering

Answer: Insurance and taxes are included in the price:

Option C: Inventory carrying cost

Explanation

Any goods that have not yet been sold are included in the inventory carrying cost. Inventory replacement and damaged or expired products are all included in these expenses as is the cost of warehousing and labor. Your products and storage needs, the total number of SKUs, your location, your inventory turnover rate, and whether you keep fulfillment in-house or outsource it will all affect your inventory carrying costs.