The Costs of Not Having a Product Available When Demanded

question 63

True/False

The costs of not having a product available when demanded by a customer are called stockout costs.

---

Definitions:

Aggressive Pricing

A competitive strategy involving setting lower prices than rivals to gain market share quickly.

Sales Agents

Individuals or companies that act on behalf of another party in the selling process, often receiving a commission or fee for their services.

Permission

The authorization or approval given by one party to another, allowing them to take a specific action or perform a certain task.

Franchisee

An individual or company that is granted the right by a franchisor to carry out business under the franchisor's brand and operational model.