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:

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed.

Purchase Order

A commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Legal Fees

Costs incurred for legal services provided by lawyers or law firms to individuals or corporations.

Unearned Rent Revenue

Income received by a landlord for rent that has not yet been earned because the rental period has not yet occurred.