Which of the Following Is Classified as an Inventory Shortage

question 3

Multiple Choice

Which of the following is classified as an inventory shortage cost?

• A)Purchase order preparation.
• B)Production disruption.
• C)Lost sales and lost customers.
• D)Spoilage.
• E)Both "B" and "C" abovE.

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Definitions:

Overtime

Time worked in addition to one's standard working hours, typically compensated at a higher pay rate.

Gross Pay

The total amount of salary or wages earned by an employee before any deductions are made for taxes, insurance, and other contributions.

Workweek

The standard number of working hours or days that constitutes a full week of work for an employee.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount of income increases, placing a higher tax burden on high-income earners.