With Respect to Determining the Average Cost of a Stockout,the

question 55

Multiple Choice

With respect to determining the average cost of a stockout,the higher the probability of a delayed sale,the ___________ the average stockout costs and the ___________ the inventory that needs to be held.

• A)higher; higher
• B)lower; lower
• C)higher; lower
• D)lower; higher

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has its rights, privileges, and liabilities distinct from those of its members.

Legal Contracts

Binding agreements between two or more parties that are enforceable by law.