Re-order costs are the costs of making orders to purchase a quantity of a material item from a supplier. They include costs such as

Q. Re-order costs are the costs of making orders to purchase a quantity of a material item from a supplier. They include costs such as:

A.            The cost of delivery of the purchased items, if these are paid for by the buyer

B.            The costs associated with placing an order, such as the costs of telephone calls

C.            Costs associated with checking the inventory after delivery from the supplier

D.            Batch set up costs if the inventory is produced internally

E.            All of the above

Answer: All of the above