Question

Which cost is fixed ? Ordering cost or holding cost?

Answer 1

Answer:

Ordering cost.

Explanation:

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Answer 2

• Between Holding cost and ordering cost, ordering cost is fixed.
• Ordering cost is referred to the cost to create and purchase from any supplier.  
• Ordering cost comprises of purchase requisition cost, purchase order cost, cost of labor after receiving goods, cost of processing invoice etc.  
• Whereas holding cost means, the cost for storing inventory.
• It can be variable depends on the storing process, damaged goods etc.