Asked by Ismael Colon on May 02, 2024
Verified
A disruption in the production schedule due to a lack of materials is called a:
A) Cash-out.
B) Shortage cost.
C) Flexible cost.
D) Maturity hedging cost.
E) Compensating cost.
Shortage Cost
Costs incurred when the demand for a product exceeds the supply, often involving lost sales or the urgency of obtaining additional resources at a higher cost.
Production Schedule
A plan that outlines the timing and sequence of manufacturing processes required to produce a product.
- Grasp the significance of inventory levels, accounts receivable, and accounts payable in affecting a corporation's financial flow and operational period.
Verified Answer
NC
Nesha Crawford__May 09, 2024
Final Answer :
B
Explanation :
A disruption in the production schedule due to a lack of materials leads to a shortage cost. This cost can include lost sales, backorders, and the cost of expediting shipments, among other consequences.
Learning Objectives
- Grasp the significance of inventory levels, accounts receivable, and accounts payable in affecting a corporation's financial flow and operational period.