Describe various costs related to inventory.

Inventory management involves several costs, both direct and indirect, that organizations need to consider in their financial analysis and decision-making processes. Here are the main types of costs related to inventory:

1. 1. Holding Costs (Carrying Costs):
   • Definition: Costs associated with storing and maintaining inventory over a specific period.
   • Components:
     • Storage Costs: Expenses related to warehousing, shelving, security, and utilities for inventory storage.
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