Which of the following is a type of inventory shortage cost?

A) Storage and tracking costs.
B) Insurance and taxes.
C) Restocking costs.
D) Losses due to obsolescence.
E) Opportunity cost of capital invested in inventory.

Inventory Shortage Cost

Costs incurred from not having enough stock on hand, including lost sales, backorders, and potentially lower customer satisfaction.

Storage and Tracking

Methods and systems used for keeping track of inventory or assets and maintaining their condition over time.

Insurance and Taxes

Refers to the costs associated with insuring assets and property as well as the taxes imposed on income, property, and sales.