The costs of goods acquired from suppliers are classified as ___________?
Correct answer: B. purchasing costsCompare Credit Cards
- A. stock-out costs
- B. purchasing costsCompare Credit Cards
- C. carrying costs
- D. ordering costs
Explanation
The amount paid to acquire goods from suppliers is a purchasing cost. Ordering costs relate to placing and processing orders, while carrying costs arise from holding inventory.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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