Which of the Following Is NOT Considered an Ordering Cost

question 11

Multiple Choice

Which of the following is NOT considered an ordering cost?

• A)inventory taxes
• B)insurance cost on shipment
• C)cost of processing an order
• D)unloading costs

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Definitions:

Noncontrolling Interest

A minority stake in a company that is not sufficient to confer control, often reflected in the equity section of the parent company's balance sheet.

Equipment

Tangible property owned by a company that is used in its operations, such as machinery, computers, and office furniture.

Initial Value Method

An accounting method that records investments at their original cost without adjustment for changes in fair value.

Noncontrolling Interest

The portion of equity interest in a subsidiary not attributable to the parent company, which appears in the consolidated financial statements.