Procurement costs such as costs of placing orders for materials and paying suppliers are usually classified as:
A)Output-unit-level costs.
B)Batch-level costs.
C)Product-level costs.
D)Facility-level costs.
E)Vendor costs.

Question

Quizplus · Accepted Answer

Procurement costs are usually classified as batch-level costs since they are incurred for each batch or group of orders placed with suppliers. These costs are not incurred for each unit of output or specific product, nor are they associated with the overall facility.

Procurement Costs Such as Costs of Placing Orders for Materials