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Number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate

A. annual irrelevant ordering costs

B. annual relevant carrying costs

C. annual relevant ordering costs

D. annual irrelevant carrying costs

Answer: Option C

Solution(By Examveda Team)

Number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate annual relevant ordering costs. Ordering costs are the expenses incurred to create and process an order to a supplier.

This Question Belongs to Commerce >> Costing

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