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Shortage costs include Multiple Choice increased insurance costs on inventory and an increased rate of return on assets. production stoppages due to lack of materials
Shortage costs include
Multiple Choice
- increased insurance costs on inventory and an increased rate of return on assets.
- production stoppages due to lack of materials and lost customer goodwill.
- increased sales due to inventory selection and increased order costs.
- increased uses of cash for net working capital and stockouts.
- all costs that increase with increased current assets.
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