What does carrying cost of inventory mean?

carrying cost of inventory meaning in Law Dictionary

This is the cost a business incurs over a certain period of time, to hold and store its inventory. Businesses use this figure to help them determine how much profit can be made on current inventory.

carrying cost of inventory meaning in Business Dictionary

This amount relates to the buying price of exactly how much stock is held in stock. The company utilizes this quantity to observe how much revenue may be realized regarding existing stock and exactly how more is produced or made to keep up earnings and expenditures.