Potential loss of reputation and market share are opportunity costs of spoilage and rework.

Question

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Spoilage and rework can lead to delays in delivering products or services, lower quality output, and dissatisfied customers. This can damage a company's reputation and lead to a loss of market share as customers may turn to competitors who offer more reliable and high-quality products/services. These potential losses are considered opportunity costs of spoiling and rework.

Potential Loss of Reputation and Market Share Are Opportunity Costs