Which of the following costs would NOT be included in the cost of placing an order?
A) setup costs
B) costs of placing a purchase order
C) back-order costs
D) all the above
E) none of the above

Question

Quizplus · Accepted Answer

Back-order costs are costs incurred due to not having enough inventory and does not directly relate to the cost of placing an order. Setup costs and costs of placing a purchase order are both associated with the act of placing an order and would be included in the cost of placing an order.

Which of the Following Costs Would NOT Be Included in the Cost