Costs associated with inspecting, unpacking and putting into storage incoming inventory are components of ____ cost.
A)Ordering or setup
B)Holding
C)Shortage
D)Unit

Question

Quizplus · Accepted Answer

Inspecting, unpacking, and putting inventory into storage are activities performed when placing an order and are considered part of the ordering or setup cost. Holding cost refers to the cost of storing the inventory, shortage cost refers to the cost of not having enough inventory, and unit cost refers to the cost of producing or purchasing one unit of the inventory.

Costs Associated with Inspecting, Unpacking and Putting into Storage Incoming