carry-costs

Vocabulary Word

Definition

Even if you've heard the term 'carry costs' before, it can be a bit tricky to fully understand. Basically, it's the cost of holding onto an investment, like stocks or property, over a period of time. This might include expenses like maintenance costs, interest charges, or taxes.

Examples in Different Contexts

In inventory management, 'carry costs' are the costs associated with storing unsold goods. A supply chain manager might say, 'Reducing our inventory's carry costs will improve our overall financial health.'

Practice Scenarios

Business

Scenario:

It seems like our warehouse expenses are skyrocketing. We need a better inventory management system.

Response:

Let's focus on reducing our carry costs by improving inventory turnover.

Tech

Scenario:

The expenses associated with outdated equipment are impacting our budget. We should revise our tech upgrade plan.

Response:

You're right! By replacing old hardware, we will definitely reduce the carry costs.