Which of the following is NOT an example of an ordering cost for products purchased from a supplier?

• A. The cost of transmitting the order
• B. The cost of receiving the product
• C. The cost associated with processing the invoice
• D. The opportunity cost of not ordering from a least cost supplier

Answer: (D)

Ordering costs are the expenses tied to the transactional steps needed to place and receive an order: transmitting the order to the supplier, receiving the shipment, and processing the invoice for payment. These costs occur with each order and are tied to the ordering process itself, not to the price of goods.

The option describing the opportunity cost of not ordering from the least-cost supplier is about the foregone savings from a supplier choice, which is a decision-level economic consideration rather than a cost incurred during the act of placing and receiving an order.