For single order quantities,the cost of overestimating demand would be
A)Lost revenue
B)Cost
C)Cost - salvage value.
D)Revenue - cost.

Question

Quizplus · Accepted Answer

The cost of overestimating demand for single order quantities is represented by the cost of the unsold goods minus any salvage value you can recover from them. This accounts for the initial expenditure on the goods that were not sold, while also subtracting any amount recouped through selling the goods at a reduced price or through another form of recovery.

For Single Order Quantities,the Cost of Overestimating Demand Would Be