BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is meant by procurement cost?
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costs incurred in connection with the activities of ordering materials/goods, starting from the placement of orders until the availability of goods in the warehouse
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costs incurred due to the holding of goods in inventory
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Costs incurred as a result of a shortage of goods
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Costs that arise due to the need to set up production equipment
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Explanation:
Detailed explanation-1: -Procurement costs are those costs that are associated with acquiring goods and services from external sources. In fact, procurement involves the entire process of obtaining the goods, including planning a budget, finding a supplier, financing, negotiating the terms of the contract, inventory control, and more.
Detailed explanation-2: -Procurement costs are the expenses your organization incurs to provide the goods or services your customers expect.
Detailed explanation-3: -Inventory carrying costs can be sorted into four categories: capital costs, storage costs, service costs and inventory risk costs.
There is 1 question to complete.