The Inventory Cost That Can Include Lost Sales, Cost of Expediting

question 49

Multiple Choice

The inventory cost that can include lost sales, cost of expediting, and cost of interrupted production is called

• A) ordering cost.
• B) carrying cost.
• C) stockout cost.
• D) setup cost.
• E) storing cost.

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Definitions:

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Gross Profit Percentage

A financial ratio that expresses the gross profit as a percentage of sales revenue, indicating the efficiency of production and cost management.

Cost of Goods Sold

Costs directly related to the creation of a company's sold products, involving expenses for materials and workforce.