In Managing Inventory,the Costs That Result When a Company Runs

question 122

Multiple Choice

In managing inventory,the costs that result when a company runs out of a particular item for which there is a customer demand are known as:

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

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Definitions:

Teratogens

Agents or factors that can cause developmental malformations or birth defects in an embryo or fetus when exposed during pregnancy.

Mutagens

Agents, such as chemicals or radiation, that can cause mutations by altering the DNA sequence within genes.

Carcinogens

Substances or exposures that are known to cause cancer or significantly increase the risk of developing cancer.

Preventable Hazard

A risk or danger to health and safety that can be minimized or eliminated through proactive measures, planning, and awareness.