Carrying costs

Also found in: Dictionary, Thesaurus, Legal.
Related to Carrying costs: Ordering Costs

Carrying costs

Costs that increase with increases in the level of investment in current assets.

Carrying Charge

1. The cost of storing a commodity over a period of time. It includes incidental costs, insurance coverage, and the physical cost of storage. It does not include depreciation, if any. The carrying charge is incorporated to the price of a commodity on the futures market.

2. In interest rate futures, the difference between the cost of purchasing an instrument and its yield. See also: Profit, Loss.

3. Fees a firm charges for making a loan. The largest single carrying charge is the interest, but it also includes charges such as an origination fee or an application fee. See also: All-in cost.
References in periodicals archive ?
The UNICAP extra tax cost as a percentage of the other carrying costs.
For asset-intensive industries that operate around the clock in remote sites, maintaining stocking levels of critical spares while reducing overall carrying costs not only leads to more efficiency, but also to millions of dollars in cost savings.
CPL's total pre-tax STP deferrals for the periods affected were approximately $492 million, of which $270 million represents carrying costs.
During the quarter, nearly $5 million of other real estate owned was sold at prices approximating the carrying costs established at year-end 1993.
Rock-Tenn Company expects to incur cash operating and restructuring costs of approximately $3 million, which will include severance, facility lease and carrying costs net of sublease rentals and equipment relocation costs, and to incur asset impairment costs of approximately $2 million.
A Texas District Court upheld the Public Utilities Commission of Texas' (PUCT) 1987 order allowing deferred accounting, but the excluded deferred carrying costs from rate base was negative.
By choosing the accelerated auction method of sales, the seller can avoid the carrying costs associated with long-term asset management and maintenance, including taxes and marketing expenses.
Sophisticated service parts forecasting and planning is mission critical for companies looking to meet or exceed service commitments while minimizing inventory carrying costs.
Unsecured creditors would receive 98 percent of their allowed claims, plus carrying costs.
This action saved the seller approximately $1 million in carrying costs that would have accrued during a workout period.
5 million to reduce the carrying costs to its estimated net realizable value.
In its prior ruling, the court had ruled the PUCT was not authorized under applicable law to include in rate base operating and carrying costs on Units 1 and 2 of the Palo Verde Nuclear Generating Station incurred during the interim period between the time the units were declared as plant-in-service (upon completion of their construction for Texas purposes) and their actual inclusion in rates charged to Texas customers.