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:

Hormone

Chemical substances produced in the body that regulate and control the activity of certain cells or organs.

Dopamine

A neurotransmitter in the brain that is involved in pleasure, motivation, and reward mechanisms.

Adrenalin

A hormone and neurotransmitter, also known as epinephrine, that increases heart rate, muscle strength, blood pressure, and sugar metabolism, usually in response to stress or excitement.

Cross-functional Marketing

A strategy that involves multiple departments or groups within a company working together towards a common marketing goal.