What type of costs are incurred to purchase and receive products in inventory?

The correct answer pertains to inventory ordering costs, which are the expenses directly associated with the procurement of goods needed for inventory. These costs include expenses related to placing purchase orders, transportation fees, receiving goods, and handling items as they are brought into the inventory. Essentially, inventory ordering costs encompass all activities and resources used to acquire products until they are ready for sale or use.

Understanding this concept is crucial for effectively managing operations and maintaining optimal inventory levels. Organizations focus on minimizing these costs to enhance profitability while ensuring they have the necessary stock to meet customer demand. By managing inventory ordering costs efficiently, companies can improve cash flow and overall operational efficacy.