Identify five costs incurred during the ordering process in catering establishments.(5 marks)June/July 2020

There are several costs that may be incurred during the ordering process in catering establishments:

1. Purchase price: The purchase price is the cost of the goods or services being ordered from the supplier. This can vary depending on the type and quantity of items being ordered and the terms of the supplier agreement.
2. Freight or shipping costs: If the items are being shipped to the catering establishment, there may be costs associated with freight or shipping, such as transportation fees or customs duties.
3. Handling fees: Some suppliers may charge handling fees for processing and preparing orders, which can be passed on to the catering establishment.
4. Storage costs: If the items need to be stored before they are used or sold, there may be costs associated with storing them, such as rent or utilities for a warehouse or storage facility.
5. Order processing costs: There may also be costs associated with the process of placing and tracking orders, such as the time and labor of staff members who are responsible for ordering and receiving goods.