Question

Aggregate Cost of Purchase and receiving function spread over number of Likely orders
A) cost of carrying order
B) cost of consumption order
C) cost of placing order
D) cost of inventory order ​

Answer 1

Answer:

cost of consumption order

Answer 2

The cost is referred to as the cost of carrying order.

• The cost of carrying an order are the costs incurred when a new shipment of product is placed and received. The costs of keeping inventory in hand are also reflected.
• The examples of these costs include communication costs, transportation and transit insurance costs, accounting costs, etc
• The overall inventory value is determined by dividing it by the expense of storing the goods for a given time.