Ordering costs ______.
A)are expressed on a per-order basis
B)are proportional to quantity ordered
C)depend on quality of products ordered
D)are usually higher than holding costs

Question

Quizplus · Accepted Answer

Ordering costs refer to the expenses that occur each time an order is placed for products or materials. As such, ordering costs are expressed on a per-order basis, making choice A the correct answer. Option B is incorrect because ordering costs are not proportional to the quantity ordered. The quality of products ordered is unrelated to ordering costs, eliminating choice C, and choice D is also false because holding costs are usually higher than ordering costs.

Ordering Costs ______