In Managing Inventories,the Costs of Preparing,issuing,and Paying Purchase Orders,plus Receiving

question 116

Multiple Choice

In managing inventories,the costs of preparing,issuing,and paying purchase orders,plus receiving and inspecting the items included in orders are known as:

• A)carrying costs.
• B)purchasing costs.
• C)ordering costs.
• D)stockout costs.

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Definitions:

Withdrawals

Money or other assets taken out from a business by its owner(s) for personal use.

Accounts Receivable

The financial claim a company holds against its customers for sales made on credit, indicating future cash inflows.

Account

A record summarizing all the transactions pertaining to a specific item in the financial statements.

Expenses Paid

Refers to the outflow of cash or other valuable assets from a person or company to another entity in exchange for goods or services.