Exam CSCP topic 1 question 423 discussion

he inventory-related cost that is typically used only for decision-making is: D. Obsolescence Obsolescence costs refer to the losses incurred when inventory becomes outdated or unsellable due to changes in market demand, technology, or other factors. These costs are often considered in decision-making processes regarding inventory management, such as determining the need for markdowns, discontinuing products, or making production changes.

Obsolescence refers to the decrease in value of an inventory item due to factors like technological advancements, changes in market demand, or the arrival of newer models.

The answer is A. Carrying costs. The APICS Dictionary, 16th edition, defines make-or-buy cost analysis as a comparison of all of the costs associated with making an item versus the cost of buying the item. This cost analysis is typically used only for decision making. Carrying costs are one of the costs associated with inventory management, which includes the cost of holding inventory in stock.

Does anybody have an explanation for this? I feel like it could be A. I think this is a poor question as all costs should be factored in when making decisions. What am I missing?