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

View Answer

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