Which of the following is an example of an ordering cost for goods held in inventory?
A)the opportunity cost of using funds to finance the inventory
B)the cost of storage
C)the costs of securing the inventory
D)the cost of the paperwork necessary to pay for each order

Question

Quizplus · Accepted Answer

The cost of the paperwork necessary to pay for each order is an example of an ordering cost, as it is a direct cost associated with the process of placing an order for inventory. The other options listed (A, B, and C) are all examples of holding costs, which are costs associated with storing and maintaining inventory once it has been received.

Which of the Following Is an Example of an Ordering