Which of the following statements is true?
A) Financial shortage costs arise mainly from illiquidity-shortage of cash or a lack of marketable securities to sell for cash.
B) Operating shortage costs result from lost production and sales.
C) Operating shortage costs can be substantial, especially if the product markets are competitive.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the given statements are true. Financial shortage costs arise due to a shortage of cash or marketable securities, while operating shortage costs arise due to lost production and sales. Competitive product markets can add to the substantial operating shortage costs.

Which of the Following Statements Is True