Backorders and Stockouts Are Most Likely to Cause Expenses For

question 50

Multiple Choice

Backorders and stockouts are most likely to cause expenses for:

• A) advertising costs.
• B) lost productivity.
• C) cost of capital.
• D) lost sales.

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Definitions:

Material Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Activity Cost Pool

A “bucket” in which costs are accumulated that relate to a single activity measure in an activity-based costing system.

Measure Of Activity

A metric used to gauge the level of a specific operation or process over a given time period.

Activity Rate

A rate used to allocate indirect costs to products or services, based on a specific activity or driver.