Which One of the Following Inventory-Related Costs Is Considered a Shortage

question 30

Multiple Choice

Which one of the following inventory-related costs is considered a shortage cost?

• A)storage costs
• B)insurance cost
• C)cost of safety reserves
• D)obsolescence cost
• E)opportunity cost of capital used for inventory purchases

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Definitions:

Quantity

Quantity refers to the amount or number of units of a product or service available or demanded in the market.

New Homes

Properties that are being offered for sale for the first time since their construction, often appealing to buyers seeking modern features and customization options.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices.

Sales

Transactions in which goods or services are exchanged for money.