Which One of the Following Inventory-Related Costs Is Considered a Shortage

question 4

Multiple Choice

Which one of the following inventory-related costs is considered a shortage cost?

• A) Storage costs.
• B) Insurance cost.
• C) Cost of safety reserves.
• D) Obsolescence cost.
• E) Opportunity cost of capital used for inventory.

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Definitions:

Disorganized

Describes a lack of structure or order, often leading to difficulty in finding things or focusing on tasks.

Catatonic

A psychomotor disturbance characterized by abnormal movement patterns, including rigidity, immobility, or excessive, purposeless movement.

Undifferentiated

Lacking distinctive features or not specialized in function.

Paranoid

A mental state characterized by irrational distrust or suspicion of others, often without sufficient basis.