Which of the following is NOT a characteristic of stock-out costs?
A)They are inversely related to carrying costs.
B)They can be tangible costs.
C)They can be intangible costs.
D)They are directly related to setup costs.

Question

Quizplus · Accepted Answer

Stock-out costs are costs incurred when a business runs out of inventory and cannot fulfill customer demand. They can include tangible costs such as lost sales or expediting costs, as well as intangible costs such as damage to customer relationships or reputation. They are not directly related to setup costs, which are the costs related to preparing a production line or machinery for a new production run.

Which of the Following Is NOT a Characteristic of Stock-Out