... tradeoff between the opportunity costs of accounts receivable, the cost of administering the accounts and the cost of bad debts on one side, and on the other, the benefits expressed in the increase ... (2000, p. 633) one more part of the holding cost is the cost of administration, namely it is the cost of keeping track of the cash. Transaction costs are connected to the situation when a firm ... transaction costs. Holding cost is the combination of the cost of administration, i.e. the costs incurred for keeping track of the cash, and the opportunity cost of cash, which is the cost of not...