Financing Costs

Borrowing Costs
Borrowing costs refer to the expenses incurred by an organization when it borrows money. These costs typically include interest payments and may also encompass arrangement fees and intermediary fees. Depending on accounting standards and conditions, they can either be expensed immediately or capitalized as an asset.
Cost of Carry
Cost of carry refers to the expenses associated with holding a particular asset over a period of time, which can include storage costs, insurance, and financing.

Accounting Terms Lexicon

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