Which of the Following Is Classified as an Inventory Shortage

question 1

Multiple Choice

Which of the following is classified as an inventory shortage cost?

• A) Purchase order preparation.
• B) Production disruption.
• C) Lost sales and lost customers.
• D) Spoilage.
• E) Both production disruption and lost sales and lost customers.

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Definitions:

Reprimand

To express to someone strong disapproval or criticism of their actions.

Inconsiderate

Describing behavior or actions that show a lack of concern for the needs, feelings, or well-being of others.

Notify

To inform or alert someone about a piece of information or an event.

Diabetes

A chronic condition characterized by high levels of sugar in the blood due to insulin production or action issues.