Q364
Costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as
A.
stock-out costs
B.
ordering costs
AnswerC.
carrying costs
D.
purchasing costs
Answer: Option B
Solution
Answer: Option B
Solution:
Costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as ordering costs. Ordering costs are the expenses incurred to create and process an order to a supplier.