The cost of overordering is the decrease in profit that results from failing to order a unit that could have been sold during the period

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Quizplus · Accepted Answer

The cost of overordering refers to ordering too much inventory, which can lead to excess or obsolete inventory costs, storage costs, and ultimately lower profits. Failing to order a unit that could have been sold during the period would be a missed opportunity cost, but not a cost of overordering.

The Cost of Overordering Is the Decrease in Profit That