Which of the Following Costs Is a Relevant Inventory Stockout

question 62

Multiple Choice

Which of the following costs is a relevant inventory stockout cost?

• A) The costs of obsolescence and costs of insurance that change with the quantity of inventory held.
• B) The return forgone by investing capital in inventory rather than elsewhere.
• C) The lost contribution margin on sales forgone as a result of customer dissatisfaction due to unavailability of goods.
• D) The costs of storage space owned that cannot be used for other profitable purposes when inventories decrease.

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Definitions:

Emotional Intelligence

Represents the ability to perceive, use, understand, manage, and handle emotions effectively in oneself and others, especially in interpersonal interactions.

Satisfaction with IT

A measure of how content users are with the information technology systems they use.

Satisfaction with Tasks

The degree to which individuals feel fulfilled or content with the tasks and responsibilities assigned to them in their professional roles.

Work Setting

The physical and social environment in which people perform their job duties, including the office, workspace, and company culture.