The margin lost by a firm for each lost sale because there is no inventory on hand is

A) the cost of overstocking the product.
B) the cost of stocking the product.
C) the cost of understocking the product.
D) the cost of overselling the product.

Inventory

The total quantity of goods and materials held in stock by a business, warehouse, or retail location.

Overstocking

The practice of holding more inventory than is necessary, often leading to excess stock that is difficult to sell.

Understocking

The condition where the inventory levels are too low, risking stockouts, lost sales, and dissatisfied customers.