The cost of ordering inventory included the costs involved in negotiations, cost of telephone and…

➤ When should taxes and receiving charges be treated separately from ordering cost?
Treat receiving charges as part of ordering or handling costs when they directly relate to processing an order. Treat taxes separately when they affect unit valuation, import duties, or are recoverable. Use accounting policies and decision-making needs: classify costs by function—ordering, receiving, holding, or landed cost—to ensure correct valuation and performance measures.