To Manage Its Inventories Efficiently, KC Mart, a Supermarket, Enters

Multiple Choice

To manage its inventories efficiently, KC Mart, a supermarket, enters into a five-year contract with Ziff Corp., an information technology firm. As per the contract, KC Mart has to pay $125,000 per year to Ziff Corp. in exchange for the information regarding consumer purchase behaviors. In the given scenario, the cost that KC Mart has to incur is the _____.

A) processing cost
B) acquisition cost
C) retrieval cost
D) storage cost