What are considered inventory carrying costs?

Inventory carrying costs refer to the total expenses associated with holding and storing inventory over a specific period. This encompasses various factors that affect the overall cost of maintaining inventory levels.

In the context of inventory carrying costs, the correct choice includes expenses related to damaged stock, dead stock, taxes associated with inventory, and interest on loans taken to finance the inventory. Damaged stock represents losses incurred when products are not sellable due to damage, while dead stock refers to items that remain unsold for an extended period, tying up capital. Taxes can add to the burden of holding inventory, and interest or loans create a financial obligation that results from funding inventory purchases. All these factors contribute to the total cost of maintaining inventory, making this the appropriate answer.

The other options involve costs that relate more directly to operational expenses or customer service rather than the specific costs associated with storing inventory. Staff labor costs and customer service expenses are essential for pharmacy operations but do not pertain directly to the intrinsic costs of holding stock. Shipping and handling are incurred during the procurement process rather than the ongoing carrying of inventory once it is in stock. Thus, they do not fall under the category of carrying costs.