Costs incurred when preparing and issuing purchase orders are included in which of the following categories?
A)carrying costs
B)ordering costs
C)purchasing costs
D)stockout costs
E)stockin costs

Question

Quizplus · Accepted Answer

Costs incurred when preparing and issuing purchase orders fall under the category of ordering costs. Ordering costs include all costs associated with the process of ordering and receiving goods or services, including costs of preparing and issuing purchase orders, as well as costs of receiving and inspecting goods upon delivery.

Costs Incurred When Preparing and Issuing Purchase Orders Are Included