Question

Extra units that are held in inventory to reduce stockouts are called a. demand variance. b. reorder point. c. safety stock. d. just-in-time inventory.

Answer 1

Extra units that are held in inventory to reduce stock outs are called just-in-time inventory. The term inventory refers to both the raw materials utilized in production and the finished commodities that are ready for sale. The first-in, first-out method, the last-in, first-out approach are used for inventory valuation.

Inventory turnover is a major contributor to revenue production and, subsequently, to profits for the company's shareholders, making it one of a company's most valuable assets. Work-in-progress items, finished goods, and raw materials make up the three categories of inventory. It is classified as a current asset on the asset side of a company's balance sheet.

To learn more about inventory, click here.

brainly.com/question/15118949

#SPJ4