Costs required to make or buy a product including taxes, insurance and warehousing space to store the goods are referred to as inventory carrying costs.

Inventory Carrying Costs

The costs required to make or buy a product, including risk of obsolescence, taxes, insurance, and warehousing space used to store the goods.

Taxes

Mandatory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Insurance

A financial product sold by insurance companies to safeguard against financial risk and unforeseen losses.