Which of the following is not an example of an ordering cost for products purchased from a supplier?
A)the cost of transmitting the order
B)the cost of receiving the product
C)the cost associated with processing the invoice
D)the cost of pilferage while in storage
E)the cost of clerical staff for preparing the purchase

Question

Quizplus · Accepted Answer

The cost of pilferage while in storage is not an example of an ordering cost, but rather a cost associated with inventory management and security. Ordering costs are expenses related to the process of placing and receiving orders, such as transmitting orders, processing invoices, and paying for clerical staff to prepare purchases.

Which of the Following Is Not an Example of an Ordering