Which of the Following Is an Example of an Ordering

question 6

Multiple Choice

Which of the following is an example of an ordering cost for goods held in inventory?

• A)the opportunity cost of using funds to finance the inventory
• B)the cost of storage
• C)the costs of securing the inventory
• D)the cost of the paperwork necessary to pay for each order

---

Definitions:

CRA

Canada Revenue Agency; responsible for administering tax laws for the Government of Canada and for most provinces and territories.

Depreciate

The process of allocating the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Cash Flow From Assets

The total amount of money being transferred into and out of a business, especially affecting the operational activities involving its assets.

Operating Cash Flow

Cash generated from a company's normal business operations.