Ordering costs include ______.
A)warranty costs
B)the cost of inspecting goods received for quality and quantity
C)costs of scrap
D)costs of rework

Question

Quizplus · Accepted Answer

Ordering costs are the costs associated with placing and receiving orders for materials or products. These costs may include the cost of inspecting goods received for quality and quantity, as well as other costs such as the cost of preparing and processing purchase orders, the cost of setting up equipment, and the cost of arranging for transportation or delivery of goods. Warranty costs, costs of scrap, and costs of rework are not typically considered part of ordering costs.

Ordering Costs Include ______