Asked by Autumn McKay on Apr 25, 2024
Verified
A quantity of inventory that provides protection against lost sales caused by unfulfilled demand from customers or delays in shipments from suppliers.
A) Master budget
B) General and administrative expense budget
C) Budget
D) Safety stock
E) Budgeted income statement
F) Budgeted balance sheet
G) Sales budget
H) Cash budget
I) Merchandise purchases budget
Safety Stock
An additional quantity of an item kept in the inventory to reduce the risk of stockouts due to uncertainties in supply and demand.
- Comprehend the function of safety stock within inventory management budgeting.
Verified Answer
TS
Tojki Singh5 days ago
Final Answer :
D
Explanation :
Safety stock is the inventory a company holds beyond its expected demand to prevent stockouts and lost sales due to unpredictable demand or supply chain issues.
Learning Objectives
- Comprehend the function of safety stock within inventory management budgeting.