carrying cost

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Noun1.carrying cost - the opportunity cost of unproductive assets; the expense incurred by ownership
opportunity cost - cost in terms of foregoing alternatives
References in periodicals archive ?
We've found that many companies use a noncapital carrying cost of around 10 percent.
Today, size, complexity and individual customer requirements generate other significant costs and investments critical for accurate analysis, such as freight, inventory carrying cost, HR support investment, display-ready pallet cost, "nuisance fees" and so on.
Philp says lower mortgage rates are also driving housing starts and the resale market; the average monthly carrying cost for 2002 is $815, which is the lowest figure since 1987 when it was $782.
Seen in this light, the credit investigation functions is to enable the seller to make better credit decisions by refining estimates of bad debt loss and carrying cost, thus identifying advantageous and disadvantageous customers.
Specifically, the tax cost of the rules creates an additional inventory carrying cost.
In such cases, the tax paid on exercise by the option holder will usually exceed the tax savings to the corporation, so the carrying cost of the difference could be substantial.
In turn, the same size condominium has a carrying cost of approximately $375 per month and the selling prices are averaging $380,000.
According to the 18th annual State of Logistics Report, inventory carrying costs increased more than the overall U.
And a 15-year tax abatement helps keep carrying costs low.
A comprehensive view of demand enables SSL to reduce operating expenses and inventory carrying costs through more accurate management of production scheduling and inventory.
In addition, many departments store substantial amounts of excess and obsolete inventory that increases the county's warehousing and carrying costs.
The carrying costs (interest and taxes) for the land are anticipated to be $20,000 per year.