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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
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Answer #1

Answer: Option 3

Rationale: Shortage costs are not dependant on the cash outflows but on the goods and products that are manufactured. Therefore, these costs exit when demands exceed capacity irrespective of the cashflow and depend on the production margin.  

Option 1, 2, 4, and 5 might alter if this happens

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