The cost of being prevented from seeing the full extent of the problems within an operation is known as:
A) Cost of placing an order
B) Stock out costs
C) Production inefficiency costs
D) Working capital costs
E) Price discount costs
F) Storage costs
G) Obsolescence costs

Question

The cost of being prevented from seeing the full extent of the problems within an operation is known as:
A) Cost of placing an order
B) Stock out costs
C) Production inefficiency costs
D) Working capital costs
E) Price discount costs 
F) Storage costs
G) Obsolescence costs

Quizplus · Accepted Answer

The cost of being prevented from seeing the full extent of problems within an operation is related to production inefficiency costs. These costs occur due to a lack of visibility into the entire operation which prevents identifying and addressing issues that may be causing inefficiencies, delays or other problems.

The Cost of Being Prevented from Seeing the Full Extent