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    Cost Accounting Study Set 1
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    Exam 20: Inventory Management, Just-In-Time, and Simplified Costing Methods
  5. Question
    The Opportunity Cost of the Stockout Includes Lost Contribution Margin
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The Opportunity Cost of the Stockout Includes Lost Contribution Margin

Question 96

Question 96

True/False

The opportunity cost of the stockout includes lost contribution margin on the sale NOT made plus any contribution margin lost on future sales due to customer ill will.

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