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In marketing, carrying cost, carrying cost of inventory or holding cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost , and inventory costs related to perishability, shrinkage , and insurance. [ 1 ]
The cost of carry or carrying charge is the cost of holding a security or a physical commodity over a period of time. The carrying charge includes insurance , storage and interest on the invested funds as well as other incidental costs.
C. Carrying cost; Cost allocation; Cost analyst; Cost auditing; Cost breakdown analysis; Cost competitiveness of fuel sources; Cost curve; Cost driver; Cost object
[1] Costs are assigned to products, usually in a large batch, which might include an entire month's production. Eventually, costs have to be allocated to individual units of product. It assigns average costs to each unit, and is the opposite extreme of Job costing which attempts to measure individual costs of production of each unit. Process ...
Set-up cost = $20 per set-up, Annual requirements = 1000, Inventory carrying cost = 10% of value/year, Cost per part = $2 In this example, the factor d/p is ignored.
For commodity money such as gold, demurrage is the cost of storing and securing the gold. For paper currency, it can take the form of a periodic tax, such as a stamp tax , on currency holdings. Demurrage is sometimes cited as economically advantageous, usually in the context of complementary currency systems.
The carry of an asset is the return obtained from holding it (if positive), or the cost of holding it (if negative) (see also Cost of carry). [1] For instance, commodities are usually negative carry assets, as they incur storage costs or may suffer from depreciation. (Imagine corn or wheat sitting in a silo somewhere, not being sold or eaten.)
There are many commercial aircraft suitable for carrying cargo such as the Boeing 747 and the more prominent An‑124, which was purposely built for easy conversion into a cargo aircraft. Such large aircraft employ standardized quick-loading containers known as unit load devices (ULDs), comparable to ISO containers on cargo ships.