What type of major cost category is considered in the cost associated with placing and receiving the order?
A) Turnover Cost
B) Supplier-Development Cost
C) Transaction Cost
D) Pre-transaction Cost

Question

Quizplus · Accepted Answer

The cost associated with placing and receiving orders is considered a transaction cost. These costs include the expenses related to placing orders (such as ordering software, order processing labor, etc.) and receiving orders (such as inbound transportation, receiving labor, etc.). Therefore, option C is the correct choice.

What Type of Major Cost Category Is Considered in the Cost