Which of the following inventory cost elements is the most difficult to quantify?
A) Unit cost
B) Cost of reordering
C) Carrying cost
D) Shortage cost

Question

Quizplus · Accepted Answer

Shortage cost is the most difficult to quantify as it involves the potential loss of sales and the cost of dissatisfying customers, which can be hard to estimate accurately. The other inventory cost elements (unit cost, cost of reordering, and carrying cost) are more straightforward to calculate.

Which of the Following Inventory Cost Elements Is the Most