carrying cost

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Definitions from WordNet

Noun carrying cost has 1 sense

carrying cost, carrying charge - the opportunity cost of unproductive assets; the expense incurred by ownership
--₁ is a kind of opportunity cost

Definitions from the Web

Term: Carrying Cost

Definition: Carrying cost is the price or expense associated with holding, storing, and maintaining an inventory or asset over a certain period of time. It includes expenses such as storage fees, insurance, depreciation, obsolescence, and opportunity cost.

Example sentences:

The carrying cost of keeping excess inventory is high due to storage fees and potential obsolescence.
Businesses should carefully analyze their carrying costs to determine the most cost-effective inventory management strategies.
Investors need to consider the carrying costs when deciding on long-term investments.

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