The Costs That Result When a Company Runs Out of a Particular

question 2

Multiple Choice

The costs that result when a company runs out of a particular item for which there is a customer demand are ________.

• A) shrinkage costs
• B) shortage costs
• C) stockout costs
• D) EOQ estimation costs

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be observed.

Baillergeon

Refers to developmental psychologist Renee Baillergeon, known for her research in infant cognition, particularly in the areas of object permanence and physical reasoning.

Preoperational Stage

The preoperational stage is the second stage in Piaget's theory of cognitive development, occurring approximately between the ages of 2 and 7, characterized by symbolic thinking and egocentrism but a lack of logical operations in thinking.