John Jones of Jones Corporation determined that the cost related to processing an invoice from a supplier was approximately $100 per invoice.This cost is an example of:

Question

Quizplus · Accepted Answer

The cost of processing an invoice falls under the category of order cost, which includes all costs associated with placing and receiving an order, such as processing paperwork, communication with suppliers, and scheduling deliveries. It is not an inventory holding cost or investment as it does not relate to the cost of storing or carrying inventory. It is also not a wasted expense as it is necessary for the procurement process.

John Jones of Jones Corporation Determined That the Cost Related