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Give three examples of opportunity costs that typically are not recorded in accounting systems, although they are relevant to the EOQ model 1. The
Give three examples of opportunity costs that typically are not recorded in accounting systems, although they are relevant to the EOQ model 1. The gain in sales quantity by knowing the correct reorder point 2. 3. Change in contribution margin when safety stock is used Lost contribution margin on existing sales when a stockout occurs Lost contribution margin on potential future sales that will not be made to disgruntled customers The gain in sales quantity by knowing the correct reorder point The long-term bond between the company and their suppliers The return forgone by investing capital in inventory
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