1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rainbow [258]
3 years ago
10

The main shortage cost when a producer does not have a requested item in inventory is

Business
1 answer:
Kryger [21]3 years ago
5 0

Answer:

D. The cost from the loss of customer goodwill.

Explanation:

The main shortage costs are the loss of customers that would now go and shop elsewhere. These costs are crucial as once the goodwill is lost it is unlikely the customers would return due to not having being catered the first time. Business want to attract new customers but most importantly they want to retain customers.

This type of shortage cost can be objectified further in marketing costs that were spent to get the customer at the store front in the first place which have been in vain.

All other options are restocking costs that are to be incurred regardless in lead times.

Hope that helps.

You might be interested in
A total of $4000 was invested, part of it at 8% interest and the remainder at 11%. if the total yearly interest amounted to $365
ella [17]
<span>$1500 was invested at 11% $2500 was invested at 8% Assuming simple interest for each investment, we have the following expressions 0.11x = interest on 11% investment. (x = amount invested at 11%) 0.08(4000-x) = interest on 8% investment Adding the 2 expressions together and setting the sum to 365 gives 0.11x + 0.08(4000-x) = 365 Now solve for x by first distributing the 0.08 0.11x + 320 - 0.08x = 365 Subtract 320 from both sides and combine x's 0.03x = 45 Divide both sides by 0.03 x = 1500 So $1500 was invested at 11% and (4000-1500) = 2500 was invested at 8%</span>
7 0
3 years ago
A man goes all over the country buying large tracts of vacant land, splitting them into smaller parcels, and building identical
Inga [223]

Answer:

developer and a subdivider

3 0
3 years ago
In a private closed economy, (a) the marginal propensity to save is 0.25, (b) consumption equals income at $120 billion, and (c)
Andreas93 [3]

Answer:

$280 billion

Explanation:

An economy reaches the equilibrium when there is an equal amount of supply and demand.

7 0
2 years ago
Use the following data to determine the cost of goods manufactured: Beginning finished goods inventory $ 12,300 Direct labor 32,
Papessa [141]

The Cost of Goods Manufactured is $104,100.By adding the direct material cost with the direct labor cost ,factory overhead,beginning work in progress and deducting the value obtained from the ending work in process value we get the The Cost of Goods Manufactured

<u></u>

Explanation:

The information Given in the question is  

Beginning finished goods inventory

$ 12,300

Direct labor

32,100

Beginning work in process inventory

8,700

General and administrative expenses

15,000

Direct materials used

42,000

Ending work in process inventory

10,500

Indirect labor

7,800

Ending finished goods inventory

11,000

Indirect materials

15,000

Depreciation - factory equipment

9,000

So the formula for the

<u>Cost of Goods Manufactured = Direct Materials + Direct Labor + Factory Overhead + Beginning Work in Process - Ending Work in Process </u>

<u>Cost of Goods Manufactured</u> = $42,000 + $32,100 (Indirect Labor + Indirect Materials + Depreciation Factory Equipment) + $8,700 − $10,500

Cost of Goods Manufactured = $42,000 + $32,100 + $7,800 + $15,000 + $9,000 + $8,700 − $10,500 = $104,100.

So,the Cost of Goods Manufactured = $104,100.

8 0
3 years ago
Read 2 more answers
2.5 million devide to 9 person are?
Elza [17]

277777.777778 is the answer

4 0
2 years ago
Other questions:
  • Bill Mason is considering two job offers. Job 1 pays a salary of $40,100 with $6,778 of nontaxable employee benefits. Job 2 pays
    13·1 answer
  • Presented below is income statement information of the Schefter Corporation for the year ended December 31, 2013.
    13·1 answer
  • Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $334,000; the partnership
    7·1 answer
  • ___ data is generally stored in different file formats
    14·1 answer
  • Laramie Labs uses a risk-adjustment when evaluating projects of different risk. Its overall (composite) WACC is 10%, which refle
    14·1 answer
  • Mark is the inventory-control manager at Shield Corp. He usually places an order for steel rods based on the firm's daily requir
    8·1 answer
  • On January 1, Collins Corporation had 800,000 shares of $10 par value common stock outstanding. On March 31, the company declare
    9·1 answer
  • You have just determined that the actual number of workstations that will be used on an assembly line is 6, using assembly line
    10·1 answer
  • Suppose the Federal Reserve sets the reserve requirement at 12 percent, banks hold no excess reserves, and no additional currenc
    13·1 answer
  • I WILL GIVE BRAINLEY
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!