Carrying Costs


DEFINITION of 'Carrying Costs'

The price of holding, or "carrying," inventory. Carrying costs include storage costs, maintenance (particularly in regard to perishable items), insurance and other less tangible expenses, such as opportunity costs and losses due to theft.

BREAKING DOWN 'Carrying Costs'

One of the great advantages enjoyed by many cyber stores is the lack of carrying costs. Instead, many online retailers stock items as needed or have them all shipped from a central location, as opposed to having inventory at multiple brick-and-mortar locales.

  1. Transferred-In Costs

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  2. Holding Costs

    The associated price of storing inventory or assets that remain ...
  3. Periodic Inventory

    A method of inventory valuation for financial reporting purposes ...
  4. Inventory

    The raw materials, work-in-process goods and completely finished ...
  5. Inventory Turnover

    Inventory Turnover is a ratio showing how many times a company's ...
  6. Carrying Cost Of Inventory

    This is the cost a business incurs over a certain period of time, ...
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