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Even though it is often the case that no cash outflows result when demand exceeds capacity, __________ can nevertheless be experienced in those circumstances. Multiple Choice holding costs service costs foreorder costs shortage costs setup costs

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Even though it is often the case that no cash outflows result when demand exceeds capacity, shortage costs can nevertheless be experienced in those circumstances.

Shortage costs will now be explained.

What are Shortage costs?

Shortage costs are those costs that an organization suffers when there is no inventory in stock. These could arise when;

  • Customers go to other sources to purchase the items
  • When the business has to pay for the cost of shipping goods to the warehouse

So even when the business cannot meet the demands of customers, they might still suffer from shortage costs as explained above. So, even if there is no cash outflow, there are shortage costs.

Learn more about shortage costs here:

https://brainly.com/question/19148882

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