Shortage costs refer to ______.
A)ordering costs
B)setup costs
C)stock-out costs
D)purchasing costs

Name: Shortage costs refer to ______. A)ordering costs B)setup costs C)stock-out costs D)purchasing costs
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Shortage costs or stock-out costs refer to the costs incurred due to the unavailability of inventory when needed. This includes the cost of lost sales, backorders, expedited shipping, and loss of customer goodwill.

Shortage Costs Refer to ______