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Carrying Cost Of Inventory

What Does Carrying Cost Of Inventory Mean?
The cost of maintaining inventory in a company's warehouse.

Investopedia explains Carrying Cost Of Inventory
This includes things like rent, utilities, insurance, taxes, employee costs and the opportunity cost of having your capital tied up in.

Related Terms

Backorder Costs
Gross Margin Return On Investment - GMROI
Highest In, First Out - HIFO
Inventory
Inventory Turnover
Perpetual Inventory
More Related Terms

Related Links

Inventory Valuation For Investors: FIFO And LIFO - We go over these methods of calculating this component of the balance sheet, and how the choice affects the bottom line.
Advanced Financial Statement Analysis - Learn what it means to do your homework on a company's performance and reporting practices before investing.

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