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Definition of 'Carrying Cost Of Inventory'
This is the cost a business incurs over a certain period of time, to hold and store its inventory. Businesses use this figure to help them determine how much profit can be made on current inventory. It also helps them find out if there is a need to produce more or less, in order to keep up with expenses or maintain the same income stream. Carrying cost of inventory is often described as a perc...

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