A Stockout Can Potentially Be Expensive Because Of

question 23

Multiple Choice

A stockout can potentially be expensive because of:

• A) lost customers
• B) lost sales
• C) back- order costs
• D) all of the above

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Definitions:

Goods Sold

The quantity of products sold within a specific period, reflecting the company's sales performance.

Direct Materials Cost

The expense of basic materials and parts directly utilized in manufacturing products.

Raw Materials

Basic materials and substances used in the initial stages of production or manufacturing.

Month

A unit of time, typically comprising 28 to 31 days, used as a measure for organizing calendar time.