False.
Insurance and taxes on inventory are generally considered as carrying costs, which are a different type of cost from setup or ordering costs.
Setup or ordering costs are the costs associated with preparing and placing an order for inventory, such as the cost of preparing purchase orders, shipping costs, and receiving and inspecting goods.
Carrying costs, on the other hand, are the costs associated with holding and storing inventory, such as storage and handling costs, insurance and taxes on inventory, and the cost of capital tied up in inventory.