The loss incurred by a firm for each unsold unit at the end of the selling season is
A)the cost of overstocking the product.
B)the cost of stocking the product.
C)the cost of understocking the product.
D)the cost of overselling the product.

Question

Quizplus · Accepted Answer

The loss incurred by a firm for each unsold unit at the end of the selling season is referred to as the cost of overstocking the product. This is because the firm has more inventory than it was able to sell, leading to excess stock that represents wasted resources and potential lost revenue.

The Loss Incurred by a Firm for Each Unsold Unit