The Two Kinds of Shortage Costs Are

question 29

Multiple Choice

The two kinds of shortage costs are:

• A) commitment costs and costs related to safety reserves.
• B) commitment costs and costs related to supply factors.
• C) commitment costs and order costs.
• D) order costs and costs related to safety reserves.
• E) order costs and costs related to supply factors.

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Definitions:

Infant

A very young child or baby, typically from birth to one year of age, who is in the earliest stages of development.

Mongolian Spot

A benign, blue-gray birthmark, often appearing on the skin of the lower back and buttocks of infants, more common in those of Asian or African descent.

African American

An ethnic group of Americans with total or partial ancestry from any of the black racial groups of Africa.

Benign

A term used to describe conditions, tumors, or growths that are not cancerous and are unlikely to be harmful.