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Carrying Cost of Inventory

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Carrying Cost of Inventory
The cost to a business of storing its inventory over a period of time. It includes taxes, insurance, the physical cost of storage, and opportunity cost. It does not include depreciation, if any. For example, if a business sells perishable goods and some of them spoil before they are sold, the carrying cost of inventory includes the costs associated with insuring and/or replacing the spoiled goods.
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They rose into top corporate echelons in response to inflation, which had drastically changed not only interest rates but time horizons, the carrying cost of inventory, depreciation calculations and taxation of capital gains.
A world of liquidity: the impact of cash-rich companies, countries ... by Malpass, David R. / Financial Executive
Two tax inventory methods, LIFO and uniform capitalization (UNICAP), provide opportunities to decrease the tax carrying cost of inventory and to improve cashflow in the face of these inventory trends.
Inventory trends: the "Wal-Mart" effect by Petersen, Dustin C. / The Tax Adviser
The Company expects that this decision will result in the reduction of expenses as they relate to the carrying cost of inventory in the future.
OnX Incorporated Indicates Preliminary Financial Results for the Year ... by Business Wire
 
 
 
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