All costs that do not vary with the size of the order but are incurred each time an order is placed are referred to as

Question

Quizplus · Accepted Answer

The costs that do not vary with the size of the order but are incurred each time an order is placed are referred to as fixed ordering costs, denoted by S. The other options are incorrect as material cost refers to the cost of the raw materials used to make the product, holding cost refers to the cost of holding inventory, and purchase price refers to the price at which a product is purchased.

All Costs That Do Not Vary with the Size of the Order