Question

Operating shortage costs that result from lost production and sales are caused by Group of answer choices

A. restrictive credit policies.
B. not holding enough raw materials in inventory.
C. running out of finished goods.
D. all are true.

Answer 1

D, all are true

Step-by-step explanation:

Operating shortages cost are cost that arise from the inability to meet up with demand for goods. It could also be a cost that arises from the inabilty to have a good inventory system.

Causes of operating shortage costs are stated in the question as restrictive policies, not having enough materils in the inventory or running out of finished goods. All of this create an inabilty to meet demand.

Cheers.