In the context of inventory costs,__________can reflect lost sales for external customers or costs associated with interruptions to assembly lines for internal customers.
A) holding costs
B) stockout costs
C) ordering costs
D) setup costs

Question

Quizplus · Accepted Answer

Stockout costs refer to the costs associated with running out of inventory and not being able to meet customer demand or maintain production schedules. This can result in lost sales for external customers and interruptions to assembly lines for internal customers, leading to increased costs and decreased efficiency. Holding costs refer to the costs of storing inventory, ordering costs refer to the costs of placing and receiving orders, and setup costs refer to the costs of preparing machines and equipment for production runs.

In the Context of Inventory Costs,__________can Reflect Lost Sales for External