Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:

Costs involved with receipt of goods & inspection of goods is known as:

Options:

Purchased cost of inventory

Ordering cost

Holding cost

Economic Order Quantity

Correct Answer:

Ordering cost

Explanation:

The correct answer is option (2) - Ordering cost.

Ordering costs are associated with the process of ordering and receiving goods, which includes costs related to inspections, paperwork, and handling upon receipt.