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What is ordering Cost?
Ordering cost in business is those cost which are ordered by the businessmen for getting new batch in raw material. It includes different cost of purchasing the order along with such cost which is spending on inspection of batches. It will also cover documentation cost which is posed by the businessmen. These costs are also known as setup cost which is incurred in placing the order.
Some of this cost is known as transportation cost in which cost is incurred in moving the goods from warehouse to dispatching place. Other cost includes receiving cost which is incurred in unloading of goods at the warehouse along with inspecting the goods nicely to find out the defects if any.
What are the benefits of ordering cost in business?
Some of the benefits of ordering cost will include,
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