Relevant Costs-Holding cost Holding cost(carrying or inventory cost)-the sum of costs that are proportional to the amount of inventory physically on hand at any point in time. 口 Some items of holding costs: 。 Cost of providing the physical space to store the items; Taxes and insurance; Breakage,spoilage,deterioration,and obsolescence; Opportunity cost of alternative investment;Relevant Costs- Holding cost  Holding cost (carrying or inventory cost)-the sum of costs that are proportional to the amount of inventory physically on hand at any point in time.  Some items of holding costs: • Cost of providing the physical space to store the items; • Taxes and insurance; • Breakage, spoilage, deterioration, and obsolescence; • Opportunity cost of alternative investment;