Inventory Carrying Cost Calculation is the process used to determine the total cost associated with storing inventory for a given period of time. This calculation helps businesses keep their costs in check and optimize their inventory management. The calculation involves taking into account all related expenses, such as storage, insurance, depreciation, and handling costs. With an accurate carrying cost calculation, businesses can ensure that they are being financially savvy in managing their inventory. It’s a smart way to stay ahead of the competition and keep operations running smoothly!