HomeCPIM Production Mgmt PrepQuestion 8 of 10
CPIM Production Mgmt PrepQuestion 8 / 10

Which of the following terms refers to the expenses associated with storing unsold goods?

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✓ Correct answer: D. Holding Costs Answer: Holding Costs Holding costs, also known as carrying costs, include expenses related to storing unsold goods in a warehouse or storage facility. Ordering costs are typically associated with the process of purchasing inventory. Setup costs relate to preparing equipment or processes for production. Stockout costs involve the expenses incurred when inventory is unavailable to meet customer demand.

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