Get Unlimited Contributor Access to the all ExamTopics Exams!
Take advantage of PDF Files for 1000+ Exams along with community discussions and pass IT Certification Exams Easily.
CSCP learning book module 2, page 142 said: " the carrying cost include storage costs, capital cost and risk costs. Storage costs include allocations for rent, operating cost, taxes, material-handling costs, lease payments for equipment, deprecation, power costs." I think the correct answer should be B, depreciation of product equipment.
Direct materials is included in landing cost, so no C. Obsolescence itself could be although CSCP learning book lists "RISK of obsolescence" not the materialized obsolescence itself. Hence B (depreciation) is correct answer
Answer should be D - Obsolescence. risk cost consists of write-off or write down due to obsolescence. Depreciation for storage and material handling equipment and assets would be part of storage cost not production equipment depreciation
I believe the answer is D as well because "direct materials are raw materials that are made into finished products. These are not materials that are used in the production process. Direct materials are goods that physically become the finished product at the end of the manufacturing process."
A voting comment increases the vote count for the chosen answer by one.
Upvoting a comment with a selected answer will also increase the vote count towards that answer by one.
So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
winwin2022
Highly Voted 2 years, 2 months agopiotrusl
Highly Voted 2 years, 1 month agoSam_San
Most Recent 1 year, 7 months agoflyover11300
1 year, 11 months agoTreborB
2 years, 2 months agoRsbisou
2 years, 3 months ago