What are backorder and stockout costs? ANSWER Unselected Costs of advertising jobs, interviews, training programs for new employees, scrap caused by the inexperience of new employees, loss of productivity, and initial paperwork Unselected Costs that vary with the level of inventory investment: the costs of capital tied up in inventory, variable storage and warehousing costs, pilferage and obsolescence costs, insurance costs, and taxes Unselected Wages paid for work beyond the normal workweek, typically 150 percent of regular-time wages (sometimes up to 200 percent for Sundays and holidays), exclusive of fringe benefits Unselected Additional costs to expedite past-due orders, the costs of lost sales, and the potential cost of losing a customer to a competitor (sometimes called loss of goodwill)