Which of the following is classified as an inventory shortage cost?
A)Purchase order preparation.
B)Production disruption.
C)Lost sales and lost customers.
D)Spoilage.
E)Both "B" and "C" abovE.

Question

Quizplus · Accepted Answer

Inventory shortage costs include production disruption and lost sales and lost customers, as these are direct consequences of not having enough inventory to meet demand.

Which of the Following Is Classified as an Inventory Shortage