Opportunity cost (or shrinkage or obsolescence) is an example of:
A)holding cost.
B)order/setup cost.
C)customer satisfaction cost.
D)procurement/manufacturing cost.

Question

Quizplus · Accepted Answer

Opportunity cost, shrinkage, and obsolescence all represent costs that are incurred from holding inventory, such as the cost of not being able to sell a product because it has become outdated or spoiled. This is an example of holding cost, which is the cost of storing inventory over time. The other options (order/setup cost, customer satisfaction cost, and procurement/manufacturing cost) do not directly relate to the cost of holding inventory.

Opportunity Cost (Or Shrinkage or Obsolescence) Is an Example Of