Shortage costs include all the following except the:
A)opportunity costs related to a low return on assets.
B)order costs.
C)disruption of production schedules.
D)production setup costs.
E)lost sales.

Question

Quizplus · Accepted Answer

Shortage costs are the costs associated with a lack of inventory or stockouts. The options B, C, D, and E all represent typical shortage costs. However, option A refers to the opportunity costs related to a low return on assets, which is not directly related to shortages. Therefore, the correct answer is A.

Shortage Costs Include All the Following Except The