In managing inventories,the costs of preparing,issuing,and paying purchase orders,plus receiving and inspecting the items included in orders are known as:
A)carrying costs.
B)purchasing costs.
C)ordering costs.
D)stockout costs.

Question

Quizplus · Accepted Answer

The costs of preparing, issuing, and paying purchase orders, along with the costs of receiving and inspecting the items included in orders, are known as ordering costs. This includes the cost of labor, paperwork, communication, and other expenses related to the purchase order process. Carrying costs refer to the cost of holding inventory, while purchasing costs refer to the cost of the actual goods purchased. Stockout costs refer to the cost of running out of inventory and potentially losing sales or customers.

In Managing Inventories,the Costs of Preparing,issuing,and Paying Purchase Orders,plus Receiving