Sark Incorporated Is Out of Stock for a Key Item

question 61

Multiple Choice

Sark Incorporated is out of stock for a key item, which has a backorder of 200 units. An open order of 750 units is scheduled for arrival on the following Monday. What is the current inventory position at Sark?

• A) less than or equal to 0 units
• B) greater than 0 but less than or equal to 500 units
• C) greater than 500 but less than or equal to 750 units
• D) greater than 750 units

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing an action.

Autos

Short for automobiles, referring to passenger vehicles designed for personal transportation.

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.

Production Alternative

Different ways in which a firm could allocate its resources to produce various goods or services.