Ask Question
BusinessBusiness
17 December, 00:08

The actual inventory holding cost incurred by an item depends on how long it actually spends in inventory.

+4
Answers (1)
  1. 17 December, 00:49
    0
    True. The actual inventory holding cost incurred by an item depends on how long it actually spends in inventory. Holding costs are costs that happen when the inventory stays put and does not sell. The costs are calculated into the inventory costs along side of ordering and shortage costs. Holding costs can include the goods being damaged or spoiling due to the length of being held. Since they can be held for 5 days or 100 days (example) the total cost that is held depends on the length the items were held for.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The actual inventory holding cost incurred by an item depends on how long it actually spends in inventory. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Bill Rose owns Rose Sporting Goods. At the beginning of the year, Rose Sporting Goods had $2,600 in inventory. During the year, Rose Sporting Goods purchased inventory that cost $13,200. At the end of the year, inventory on hand amounted to $3,800.
Answers (1)
Inventory Analysis The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $18,500,000 $20,000,000 Beginning inventories 940,000 860,000 Cost of goods sold 9,270,000 10,800,000 Ending inventories
Answers (1)
Gideon company uses the allowance method of accounting for uncollectible accounts. on may 3, the gideon company wrote off the $2,000 uncollectible account of its customer, a. hopkins.
Answers (1)
How do property rights benefit entrepreneurs?
Answers (1)
Amounts that a business must pay in the future are known as: a. accounts receivable. b. accounts payable. c. capital. d. expenses.
Answers (1)
New Questions in Business
Concord Furniture factors $893000 of receivables to Pharoah, Inc. Pharoah assesses a 3% service charge on the amount of receivables sold. Concord Furniture factors its receivables regularly with Pharoah.
Answers (1)
Consider income data for three fictional nations. In Smithland, the top half of earners make $100,000 per year, while the bottom half make $20,000. Hayektopia's bottom half also make $20,000 per year, while its top half make $200,000.
Answers (1)
Your friend is injured while visiting your leased apartment. Her medical costs are most likely to be covered under:
Answers (1)
What are the problems the publishers face
Answers (1)
Nice Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 240 100 % Variable expenses 48 20 % Contribution margin $ 192 80 % Fixed expenses are $160,000 per month.
Answers (1)
Home » Business » The actual inventory holding cost incurred by an item depends on how long it actually spends in inventory.
Sign Up Forgot Password?