Which of the following is not an example of an ordering cost for products purchased from a supplier?
A) the cost of transmitting the order
B) the cost of receiving the product
C) the cost associated with processing the invoice
D) the opportunity cost of not ordering from a least cost supplier
E) the cost of handling the product

Question

Quizplus · Accepted Answer

The opportunity cost of not ordering from a least cost supplier is not considered an ordering cost. It is a cost associated with procurement or supplier selection. The remaining options, i.e., the cost of transmitting the order, the cost of receiving the product, the cost associated with processing the invoice, and the cost of handling the product, are all examples of ordering costs for products purchased from a supplier.

Which of the Following Is Not an Example of an Ordering