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Storage costs: Definition and Examples

The term “storage costs” refers to the total expenses incurred in connection with storing goods, materials, or products. These costs consist of fixed, variable, and overhead components and are a key element of business cost accounting. They directly affect a company’s profitability and competitiveness, as they are included in product pricing and overall cost calculation. Typical storage costs include rent or lease payments, energy expenses, personnel costs, depreciation, packaging materials, insurance, interest on tied-up capital, and a proportion of administrative costs. In essence, storage costs serve as a collective economic term for all expenses arising from the maintenance and operation of warehouse facilities.

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