Inventory-Carrying Costs Represent Substantial Dollars for Manufacturers

Multiple Choice

Inventory-carrying costs represent substantial dollars for manufacturers. These inventory-carrying costs include storage charges, cost of capital, taxes and insurance, and depreciation and obsolescence. Carrying costs might run as high as ________ of the value of the inventory.

A) 50 percent
B) 30 percent
C) 70 percent
D) 25 percent
E) 40 percent