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The oldest justification for punishing an offender is
Carrying Costs
Expenses associated with holding inventory, including storage, insurance, and opportunity cost of tied-up capital.
Shortage Costs
Costs incurred from not having enough inventory on hand, including lost sales and emergency shipping expenses.
Order Costs
Expenses related to placing and receiving orders for inventory, including costs associated with ordering, shipping, and handling.
Accounts Receivable Period
The common interval before a business secures payments from its customers for products or services rendered on credit.
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