Even though it is often the case that no cash outflows result when demand exceeds capacity, __________ can nevertheless be experienced in those circumstances.
A)foreorder costs
B)service costs
C)shortage costs
D)holding costs
E)setup costs

Question

Quizplus · Accepted Answer

When demand exceeds capacity, shortage costs can be experienced. This is because the inability to meet demand can lead to lost sales, dissatisfied customers, and potential damage to a company's reputation, all of which are considered shortage costs.

Even Though It Is Often the Case That No Cash