Question

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

Answer 1

"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.