Shortage Costs Are Those Costs That

Shortage costs are those costs that:

A) Increase as the level of investment in current assets rises.
B) Increase as a firm moves from a restrictive to a flexible short-term financing policy.
C) Result from having insufficient cash or inventory on hand to meet the demands of the firm.
D) Decrease as the level of inventory declines and inventory orders are placed more frequently.
E) Decrease as the opportunity cost of lost sales rises.