Certified Professional Category Analyst (CPCA) 2025 – 400 Free Practice Questions to Pass the Exam

In activity-based costing (ABC) analysis, particularly in the context of assortment planning, several cost categories are taken into account to provide a comprehensive view of the resources consumed during the process. When considering assortment planning, it is essential to account for all relevant costs that impact the overall expense and profitability of inventory management.

Store size is a critical factor as it can influence the sales potential and the cost required for maintaining that space. Larger stores may incur higher costs in utilities, maintenance, and staffing, which can affect the decisions regarding inventory assortment.

Inventory carrying costs are fundamental in ABC analysis; they represent the costs associated with holding inventory over time. These costs include storage costs, insurance, depreciation, and opportunity costs of capital tied up in inventory. By analyzing these costs, businesses can determine the optimal assortment that minimizes carrying expenses while maximizing sales.

Warehouse labor and associated costs are also a significant consideration. These costs encompass the labor required for receiving, storing, picking, and shipping products. Understanding these expenses helps organizations streamline their operations and make more informed decisions about their product assortments.

Taking all these elements into account ensures a holistic approach to costing, allowing businesses to accurately assess the profitability and efficiency of their assortment planning strategies. Therefore, “All of the above” is