Carrying Costs

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.

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.

Investment dictionary. . 2012.

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  • Carrying costs —   Costs incurred in order to retain exploration and property rights after acquisition but before production has occurred. Such costs include legal costs for title defense, ad valorem taxes on nonproducing mineral properties, shut in royalties,… …   Energy terms

  • carrying costs — costs that increase with increases in the level of investment in current assets. Bloomberg Financial Dictionary …   Financial and business terms

  • carrying costs — Awarding costs, a judgment which includes the costs as a part thereof. See carrying charges …   Ballentine's law dictionary

  • carrying costs — holding costs 1) The costs of maintaining an inventory, including any opportunity costs, protective measures, wastage, etc. 2) The costs of holding a particular financial position …   Big dictionary of business and management

  • carrying costs — All costs associated with holding items in inventory for a period of time. See also carrying charge …   Black's law dictionary

  • carrying costs — All costs associated with holding items in inventory for a period of time. See also carrying charge …   Black's law dictionary

  • carrying cost — ➔ cost1 * * * carrying cost UK US noun [C] ► ACCOUNTING, COMMERCE the cost of storing goods before they are sold: »Pushing the ownership of inventory backwards to the supplier reduces inventory carrying costs for the customer. ► ACCOUNTING… …   Financial and business terms

  • Carrying cost — In marketing, carrying 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 perishibility, shrinkage and …   Wikipedia

  • carrying charges — The cost of storing a physical commodity, consisting of interest on the invested funds, insurance, storage fees, and other incidental costs. Carrying costs are usually reflected in the difference between futures prices for different delivery… …   Financial and business terms

  • carrying charge — Charge made by creditor, in addition to interest, for carrying installment credit. Under consumer credit protection statutes, full disclosure of all such service charges is required. See Truth in Lending Act. See also carrying costs …   Black's law dictionary

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