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.