All Costs That Do Not Vary with the Size of the Order

question 29

Multiple Choice

All costs that do not vary with the size of the order but are incurred each time an order is placed are referred to as

• A) the material cost and is denoted by C.
• B) the fixed ordering cost and is denoted by S.
• C) the holding cost and is denoted by H.
• D) the purchase price and is denoted by P.