inventory always increases the cost of the product
Expert Answer
It is indeed true that Inventory increases the cost of the product. Carrying inventory increases the cost of the product in the below mentioned ways:
Inventory carrying cost : Carrying and stocking the inventory adds up to the cost of the product.
Warehousing Cost : Stocking the inventory in the warehouse adds up to the cost of the product.
Obsolescence Cost : If there is a stock of large amount of inventory and it becomes obsolete especially in case of electronic gadgets, that also adds up to the cost.
Thus inventory increases the
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