Ordering cost is inventory Cost item that is related to the managerial and clerical costs to prepare a purchase or production order. So, the correct answer is (e).
Both the natural resources used in manufacturing and the finished products that are offered for sale are included in the concept of inventory. One of a company's most valuable assets is its inventory because it is one of the main sources for income generation and, consequently, a source of profits for the shareholders of the company. There are three different categories of inventory: finished commodities, work-in-progress, and materials. On the balance sheet of a company, it is listed as a liquid assets. Inventory is a crucial asset for any business. It is described as the assortment of raw resources or completed products that a company maintains throughout the normal course of its operations.
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