A. buying cost
B. selling cost
C. opportunity cost
D. exchange rate risk
✅ The correct answer is option C.
Holding an inventory have opportunity cost. Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. While financial reports do not show opportunity cost, business owners can use it to make educated decisions when they have multiple options before them.
Holding an inventory have opportunity cost. Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. While financial reports do not show opportunity cost, business owners can use it to make educated decisions when they have multiple options before them.