Two Way Power Ltd. (2WP) stocks an inventory item, BB3, that is projected to be in great

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Two Way Power Ltd. (2WP) stocks an inventory item, BB3, that is projected to be in great demand over the next 12 months. In discussing its sales forecasts with its suppliers, a reasonable estimate shows that 2WP could lose about $30,000 of sales in month 3 due to inventory financing difficulties. Which, if any, of the following inventory costs would be affected by this development?

a. Purchase cost

b. Carrying costs

c. Ordering costs

d. Stockout costs

e. None of these costs because loss of sales is not an inventory cost

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Principles Of Finance

ISBN: 9798439388899

1st Edition

Authors: Julie Dahlquist, Rainford Knight

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