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As it relates to inventory, a buyer's time expended to prepare the purchase order for more material is considered a(n) ____ cost.

1 Answer

11 votes

Answer:

"Ordering" is the correct solution.

Step-by-step explanation:

  • Ordering expenses are incurred in purchasing a new shipment of manufactured goods. This would include expenditures for the attempting to place of a purchase agreement, cost savings for the evaluation including its batches expected to receive, ends up costing for documentary evidence, etc.
  • The cost of ordering correlated negatively with either the cost of transport. This appears to mean because the much more purchases a business location including its providers, the significantly higher the ordering costs will indeed be.
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