Which of the following is an example of an ordering cost for goods held in inventory?
A)the cost of storage
B)the opportunity cost of using funds to finance the inventory
C)the managerial time spent creating an order for inventory
D)the costs of securing the inventory

Question

Quizplus · Accepted Answer

Ordering costs refer to the expenses incurred when placing an order for inventory, such as the time spent by managers to create the order. Option A refers to holding costs, option B refers to financing costs, and option D refers to security costs.

Which of the Following Is an Example of an Ordering