Asked by Dheandra Armyra on May 13, 2024
Verified
Ordering cost refers to the expense of placing an order for additional inventory, including the cost or expense of the product itself.
Ordering Cost
The expenses associated with placing and receiving orders for materials, including costs related to paperwork, communication, and transportation.
Inventory
The stock of goods, materials, parts, and products that a business holds to fulfill future sales or production needs.
- Gain insight into how inventory models influence storage requirements, purchasing expenses, and the aggregate cost makeup of inventory.
Verified Answer
KG
Kenia GarciaMay 17, 2024
Final Answer :
False
Explanation :
Ordering cost refers to the expenses related to the process of ordering inventory, such as administrative costs, but does not include the cost of purchasing the product itself.
Learning Objectives
- Gain insight into how inventory models influence storage requirements, purchasing expenses, and the aggregate cost makeup of inventory.