Costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as

A. stock-out costs

B. ordering costs

C. carrying costs

D. purchasing costs

Answer: Option B

Solution(By Examveda Team)

Costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as ordering costs. Ordering costs are the expenses incurred to create and process an order to a supplier.