Course Solutions Uncategorized (Answered) : Which one of the following factors is not considered when calculating H, holding cost per unit per unit time? Select one:

(Answered) : Which one of the following factors is not considered when calculating H, holding cost per unit per unit time? Select one:

Which one of the following factors is not considered when calculating H, holding cost per unit per unit time?

Select one:

a. Depreciation

b. Rent

c. Demand

d. Opportunity Cost

e. Insurance

Expert Answer


Ans:

Option A – Depreciation

Holding costs are the costs of holding inventory which remained unsold.The factors considered in computing holding cost are cost of storage, labor, insurance​,demand, cost of damaged goods.However depreciation is not considered in calculating holding cost.

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