Which of the Following Costs Is a Relevant Inventory Stockout

question 18

Multiple Choice

Which of the following costs is a relevant inventory stockout cost under EOQ decision model?

• A) The costs of obsolescence and costs of insurance that change with the quantity of inventory held.
• B) The return forgone by investing capital in inventory rather than elsewhere.
• C) The lost contribution margin on sales forgone as a result of customer dissatisfaction due to unavailability of goods.
• D) The costs of storage space owned that cannot be used for other profitable purposes when inventories decrease.

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Definitions:

Critical Attitude

A mindset characterized by careful evaluation and judgment, often questioning and analyzing information or situations.

Documenting Care

The process of recording all aspects of patient care, from initial assessment to treatment and outcomes.

Nurse Manager

A registered nurse who has leadership responsibilities, overseeing nursing staff and operations within a healthcare setting.

Critical Thinking

The goal of critically examining and assessing a matter to establish an opinion.