Shortage Costs Include All the Following Except The

question 29

Multiple Choice

Shortage costs include all the following except the:

• A)opportunity costs related to a low return on assets.
• B)order costs.
• C)disruption of production schedules.
• D)production setup costs.
• E)lost sales.

Identify the break-even point in both unit and dollar terms.

Recognize the importance and creation of cost behavior graphs.

Familiarize with methods for segregating costs into fixed and variable components.

Calculate and understand the significance of the contribution margin ratio.

---

Definitions:

Decimal Equivalent

A numerical representation that expresses fractions in a decimal format.

Percent Equivalent

The numerical value of a fraction expressed as a percentage.

Rounded

The process of adjusting a numerical figure to its nearest specified place value, such as to the nearest whole number.

Significant Figures

The number of digits in a value that contribute to its precision, typically starting with the first non-zero digit.