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

question 18

Multiple Choice

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

• A) Storage costs
• B) Insurance cost
• C) Loss of customer goodwill
• D) Theft cost
• E) Opportunity cost of capital used for inventory purchases

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Definitions:

Validity

Accuracy; the extent to which a test or other measuring instrument measures what it is supposed to measure.

Reliability

The extent to which a test or other measuring instrument yields consistent results.

Self-report

A method of gathering data in which individuals provide information about themselves, often used in surveys and questionnaires.

Selye's Theory

A concept introduced by Hans Selye that defines stress as a nonspecific response of the body to any demand placed upon it, highlighting stages like alarm, resistance, and exhaustion.