Which of the following is not an ordering cost?

Question

Quizplus · Accepted Answer

Cost of storing inventory is a carrying cost, not an ordering cost. Ordering costs are costs incurred in placing and receiving orders for inventory, such as the cost of preparing the order, the cost of receiving the inventory and the cost of payment for inventory ordered. Carrying costs, on the other hand, are costs incurred to hold and maintain inventory in stock, such as the cost of storage, insurance, and obsolescence.

Which of the Following Is Not an Ordering Cost