The Formula for Ordering Cost Is the

question 9

Multiple Choice

The formula for ordering cost is the

• A) number of orders per year * cost of placing an order.
• B) number of orders per year/cost of placing an order.
• C) average number of units in inventory *cost of carrying one unit in inventory.
• D) average number of units in inventory/cost of carrying one unit in inventory.
• E) ordering cost + carrying cost.

---

Definitions:

Commission Charges

Fees paid to an agent or company for facilitating a transaction, typically a percentage of the sale amount.

Proceeds

The total amount of money received from a sale or transaction, before any deductions or expenses are accounted for.

Commission Charges

Fees assessed for services provided, often calculated as a percentage of the transaction value, such as in trading or sale transactions.

Dividend

A Dividend is a portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional shares.