Question

The costs of goods acquired from suppliers including incoming freight or transportation costs​ are: A. carrying costs B. ordering costs C. purchasing costs D. stockout costs

Answer 1

Answer: Option (c) is correct.

Step-by-step explanation:

Correct option: Purchasing costs

Purchasing costs are the costs which generally includes the incoming freight or transportation costs on the goods that are acquired from the suppliers.

Transportation costs are also known as freight costs, which are the part of cost of goods purchased.

Suppose a company purchased goods from a supplier with certain terms such as FOB shipping point , then a company have to bear all the costs that is incurred during the transportation of products from the seller's place to the company's place.