Final answer:
Ordering and transportation costs are best classified as variable costs, changing with production or service levels, and are a component of a company's operating costs.
Step-by-step explanation:
The question pertains to the categorization of ordering and transportation cost within a business context. Ordering and transportation costs are typically considered as either variable costs or operating costs. Variable costs change with the volume of goods produced or services provided, while operating costs are the expenses required to maintain the daily functions of a company.
These costs can include expenses for logistics, inventory management, and delivery of goods. Since these expenses tend to rise with an increase in production or service levels, they are generally classified as variable rather than fixed costs.
Fixed costs, on the other hand, do not vary with output levels in the short run. Examples include rent, salaries of permanent staff, and depreciation of equipment. Marginal cost refers to the addition to the total cost of producing one more unit of output.
Therefore, ordering and transportation cost is most accurately described as a variable cost due to its fluctuation with the quantity of goods being ordered and transported.