Multiple choice

Directions: Choose the correct option and complete the sentence.

Cost incurred immediately in order to avoid the hampering of production is called

  1. idle cost

  2. holding cost

  3. carrying cost

  4. ordering cost

  5. urgent cost
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

An urgent cost is incurred to prevent the disruption of production processes. It is a reactive cost meant to maintain operational continuity.

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