Shortage Costs Include

question 20

Multiple Choice

Shortage costs include

• A)all costs that increase with increased current assets.
• B)production stoppages due to lack of materials and also lost customer goodwill.
• C)increased sales due to inventory selection and increased order costs.
• D)increased insurance costs on inventory and an increased rate of return on assets.
• E)increased uses of cash for net working capital and stockouts.

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Definitions:

Tax Liability

The total amount of tax owed by an individual or entity to the tax authorities.

Married Couple

Two individuals legally married to each other, who may file joint or separate tax returns in the eyes of the law.

Failure to File

Failure to File is the penalty incurred for not submitting a required tax return or document by the due date, which can result in fines and interest charges.

Tax Shown

The amount of tax displayed on a taxpayer's return or assessed as due by the IRS.