Which of the Following Are Shortage Costs

question 44

Multiple Choice

Which of the following are shortage costs?

• A) Cost of disrupted production
• B) Lost sales resulting in unsatisfied customers
• C) Loss of quantity discounts on purchases.
• D) All of the given answers

---

Definitions:

Proceeds

The amount of money received from a sale or transaction.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal, paid by the borrower for the use of lender’s funds.

Compounded Interest

Interest that is computed on both the original amount of money and the interest it has already earned over past periods, whether it’s a savings or a loan.

Investments

Assets or items acquired with the intention of generating income or appreciating in value over time.