MNO1504-25-S2 Course Materials & Test Answers | mymodules.dtls.unisa.ac.za

Which option represents the cost of capital?

This cost reflects the economic consequences of running out of stock, such as when a sale is lost, or a dissatisfied customer is less likely to buy the specific item in the future.

This cost is assigned to items with a high risk of becoming obsolete.

This cost includes variable space cost, insurance and taxes.

This represents a cost of foregone opportunities for other investments, which is assigned to inventory as an opportunity cost.

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MNO1504-25-S2

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