Asked by
Holland Mills
on Oct 23, 2024Verified
What kind of costs are transportation and receiving costs?
A) Ordering costs
B) Shortage costs
C) Carrying costs
D) Production costs
Transportation Costs
Expenses associated with the movement of materials, goods, or personnel from one location to another, which can include freight, shipping, and logistics costs.
Receiving Costs
Expenses associated with accepting goods from suppliers, including inspection, storage, and document processing costs.
Shortage Costs
Costs incurred as a result of insufficient inventory, including potential lost sales, backorder handling, and decreased customer satisfaction.
- Differentiate between various types of costs (ordering, carrying, and shortage) and how they impact inventory management.
Verified Answer
SS
Learning Objectives
- Differentiate between various types of costs (ordering, carrying, and shortage) and how they impact inventory management.