Which of the following is defined as costs associated with not having sufficient cash, inventory, or accounts receivable?
A) Net working capital costs
B) Opportunity costs
C) Shortage costs
D) Cash cycle costs

Question

Quizplus · Accepted Answer

Shortage costs are specifically associated with the consequences of not having enough cash, inventory, or accounts receivable to meet immediate demands. These can include lost sales, backorder costs, and emergency shipping costs, among others.

Which of the Following Is Defined as Costs Associated with Not