When does a firm incur holding costs? When does it incur stock-out costs?
What will be an ideal response?
Holding costs, or storage costs, are incurred when a purchased item arrives and must be stored as inventory. Stock-out costs are the cost a business experiences when it runs out of inventory. That cost occurs when an item is not physically in stock in inventory.
You might also like to view...
Frank and Lillian Gilbreth identified 17 basic units of ______, each of which they called a "therblig."
A. time B. distance C. energy D. data E. motion
Marko and Busola attended a lecture on changing weather patterns in the United States. The lecture confirmed Marko’s growing belief that global warming is increasing at a rapid rate and we need to do something right now! Busola, however, got the message that global warming isn’t as bad as we originally predicted. Marko and Busola are most likely engaged in ______.
a. selective attention b. selective perception c. selective exposure d. selective memory
Under the theory of industry wide liability, when it is impossible to successfully identify the particular manufacturer that caused the harm, courts will:
A. withhold liability among the firms in that industry that could have produced the product. B. apportion liability among manufacturers based on market share. C. prohibit further manufacturing of the product. D. make the plaintiff identify a likely manufacturer.
As it pertains to transportation, ________ refers to a carrier's ability to provide service from the source of the shipment to its destination.
Fill in the blank(s) with the appropriate word(s).