[amp_mcq option1=”stock-out costs” option2=”ordering costs” option3=”carrying costs” option4=”purchasing costs” correct=”option4″]<\/p>\n
The correct answer is D. purchasing costs<\/strong>.<\/p>\n Purchasing costs are the costs associated with the acquisition of goods and services. They include the costs of issuing purchase orders, making of delivery records for tracking payments, and costs of inspection of items.<\/p>\n Stock-out costs are the costs incurred when a company runs out of stock of a product. They can include the costs of lost sales, customer dissatisfaction, and damage to the company’s reputation.<\/p>\n Ordering costs are the costs associated with placing an order for goods or services. They include the costs of preparing the purchase order, the costs of shipping the order, and the costs of receiving the order.<\/p>\n Carrying costs are the costs associated with holding inventory. They include the costs of storage, insurance, and obsolescence.<\/p>\n Here is a table that summarizes the different types of costs:<\/p>\n | Cost | Description | [amp_mcq option1=”stock-out costs” option2=”ordering costs” option3=”carrying costs” option4=”purchasing costs” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-49587","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n
\n|—|—|
\n| Purchasing costs | The costs associated with the acquisition of goods and services. |
\n| Stock-out costs | The costs incurred when a company runs out of stock of a product. |
\n| Ordering costs | The costs associated with placing an order for goods or services. |
\n| Carrying costs | The costs associated with holding inventory. |<\/p>\n","protected":false},"excerpt":{"rendered":"