Effects of under stocking
Write down the effects of ‘under stocking’?
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The effects of under stocking are illustrated below:
-Production procedure can’t be managed efficiently, resulting delivery timetables.
-Firm might finish up paying an idle labor force because of the production delays.
-Organization might lose its significant customers, because of the holdup in meeting customers’ orders.
-Unfavorable quality and prices raised administration costs.
- Because of under stocking it will not be simple for the organization to meet the unforeseen demands of customers.
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Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company’s five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Lab
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