Among different types of costs associated with inventory, the costs of obtaining purchase approvals are...?

Among different types of costs associated with inventory, the costs of obtaining purchase approvals are…?

Among different types of costs associated with inventory, the costs of obtaining purchase approvals are…?
A . Purchasing price
B. Costs of stockouts
C. Acquisition costs
D. Holding costs

Answer: C

Explanation:

Direct and indirect costs of holding inventory include the following:

– Acquisition costs: preparing the requisition, supplier selection and approvals, time and costs of the procurement process, etc.

– Holding costs

– Costs of stockouts

LO 2, AC 2.2