Which of the Following Is NOT a Characteristic of Stock-Out

question 91

Multiple Choice

Which of the following is NOT a characteristic of stock-out costs?

• A)They are inversely related to carrying costs.
• B)They can be tangible costs.
• C)They can be intangible costs.
• D)They are directly related to setup costs.

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Definitions:

Productive Investment Projects

Initiatives undertaken by businesses or individuals that are expected to yield a return by increasing output or efficiency.

Uncertain Returns

The unpredictability associated with the outcome of an investment or the potential return on an investment.

Economic Profit

The difference between a firm’s total revenues and its total costs, including both explicit and implicit costs, reflecting the true profitability of the firm.

Accounting Profit

The financial gain calculated by subtracting total explicit costs from total revenue.