_________ costs are generally fixed and include all aspects of procuring an item.
A) Variable costs
B) Ordering costs
C) Holding costs
D) Shortage costs
E) None of the above

Question

Quizplus · Accepted Answer

Ordering costs are fixed costs that include all aspects of procuring an item, such as the cost of preparing and sending purchase orders, the cost of receiving and inspecting goods, and the cost of processing and paying invoices. Variable costs, on the other hand, are costs that vary with the level of production or sales, while holding costs are costs associated with storing and maintaining inventory and shortage costs are costs incurred as a result of stockouts or backorders.

_________ Costs Are Generally Fixed and Include All Aspects of Procuring