L4M7 Exam Dumps | Which of the following are holding costs? Select THREE that apply. * Shipping costs * Marketing fees

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CIPS.L4M7.v2025-07-04.q121
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Question 83/121

Which of the following are holding costs? Select THREE that apply.
* Shipping costs
* Marketing fees
* Damaged goods
* Storage space
* Insurance costs
* Legal fees

A. 1, 3, and 5

B. 2, 4, and 6

C. 3, 4, and 5

D. 1, 2, and 6

Correct Answer: C

Holding costs include expenses associated with storing inventory. These typically comprise:
* Damaged goods: Losses due to items being stored improperly or deteriorating over time.
* Storage space: Costs of renting or maintaining warehouse space.
* Insurance: Fees for insuring stored items against potential risks.
These costs are integral to whole-life asset management, as they impact overall inventory and storage expenses.

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