Backorders and stockouts are most likely to cause expenses for:
A) advertising costs.
B) lost productivity.
C) cost of capital.
D) lost sales.

Question

Quizplus · Accepted Answer

Backorders and stockouts mean that customers are unable to purchase the product they want, which can result in lost sales. This can be a significant expense for a business, as it not only means a lost revenue opportunity but may also result in decreased customer loyalty and negative word-of-mouth advertising.

Backorders and Stockouts Are Most Likely to Cause Expenses For