1. Inventory Management
  2. Costs & Value

Carrying Costs, Finished Goods

Money

These are the costs associated with holding inventory that's ready for sale. High carrying costs may indicate inefficiencies in sales or over-purchasing.

Formula

Total Costs Associated with Holding Finished Goods Inventory

Example

If the total expenses related to holding finished goods for a month are $5,000, the carrying costs are $5,000.