The Opportunity Cost of the Stockout Includes Lost Contribution Margin

question 96

True/False

The opportunity cost of the stockout includes lost contribution margin on the sale NOT made plus any contribution margin lost on future sales due to customer ill will.

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Definitions:

Financial Statements

Reports that provide an overview of a company's financial condition, performance, and cash flows.

Cumulative Effect

The total change in financial statement results over a period of time due to an accounting principle change or correction of an error.