Costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as

A. carrying costs

B. purchasing costs

C. stock-out costs

D. ordering costs

Answer: Option A

Solution(By Examveda Team)

Costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as carrying costs. Carrying costs are the costs of holding inventory and include maintenance, specifically in regard to perishable items, and storage costs.