An Example of an Ordering Cost Is

question 1

Multiple Choice

An example of an ordering cost is:

• A) security.
• B) time spent finding suppliers.
• C) idle workers.
• D) costs of disrupted production.

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Definitions:

Economies of Scale

Economic gains that organizations derive from their magnitude of operations, with the expense per produced unit usually diminishing as the operational scale grows.

Game

A structured form of play or competitive activity, often undertaken for entertainment or educational purposes.

Budgeting Process

The systematic process of allocating resources, setting financial goals, and planning future expenditures and income.

Delaying Sales

The strategic holdback of products or services from the market for a certain period to potentially increase demand or prices.