Suppose a chief supply chain officer takes the total of all purchasing managers' annual salaries and divides this number by the number of purchase orders placed in a year.This calculation would provide insight into what kind of inventory cost?

Question

Quizplus · Accepted Answer

Dividing the total of all purchasing managers' annual salaries by the number of purchase orders placed in a year would provide insight into the average cost associated with placing each purchase order, which is an example of ordering costs.

Suppose a Chief Supply Chain Officer Takes the Total of All