The relevant ________ costs are those that vary with the amount of inventory stored including the four major categories as following: 1.Capital cost, which is the return that the company could make on the money that it has tied up in inventory.2.Inventory service cost, which includes insurance and taxes on inventory. 3.Storage space cost, which includes those warehousing space- related costs which change with the level of inventory. 4.Inventory risk cost, including obsolescence, stealing, relocation within the inventory system, and damage.