All categories

3 years ago

- Safety (Security) Stock:

Business

1 answer:

Nookie1986 [14]3 years ago

6 0

Answer:

A) This is the stock that is kept in order to meet the uncertainty in demand and delivery delays in the supply period.

Explanation:

Companies sell products for profit. It is part of the companies strategy to have a stock that ensures that the company does not lose sales by not having the product at the time of demand. Safety stock serves to minimize the chance of the firm not having the product at a time when demand unexpectedly increases, or in cases where the supplier has unforeseen circumstances and delays delivery. Therefore, good inventory planning is important.

You might be interested in

Which of the following is an common factor of failure for small businesses

Alex777 [14]

A few of the following can be considered major factors in failure of small businesses:

-Lack of financial planning: when a business is born it needs to critically plan out the first few years of running. Small business often fail to plan out for the future and have less working capital at hand.

-Lack of expertise: small business cannot afford specialist managers and this may be a reason for failure

-no investment in marketing and research can also be a reason.

6 0

3 years ago

We define differentiation as: Group of answer choices Dividing a market into different age and life-cycle groups. Tailoring prod

Gre4nikov [31]

Answer:

Option C Differentiating the market offering to create superior customer value

Explanation:

The reason is that when the product are differentiated from the rest of the products in the market, it creates a sense of superiority among products because of its quality, uniqueness and exceptional things that the company offer with the product. Due to differentiated strategy, the company is able to sell at a higher price which earns greater profit for the company.

3 0

3 years ago

Read 2 more answers

If a firm experiences productivity gains from employee specialization, its marginal cost_________.

postnew [5]

Answer:

correct option is C. decreases at a decreasing rate.

Explanation:

solution

when an organization gain productivity than its marginal cost will be decreases at a decreasing rate

as here when initial specialization of employee is lead to an significant reduction in the marginal costs though the more specialized people get

and less additional amount is save due to the specialization

so here correct option is C. decreases at a decreasing rate.

4 0

3 years ago

at the end of the current year, using the aging of accounts receivable method, management estimated that $16,500 of the accounts

Furkat [3]

The adjusting entry that the company should pass at the end of the current year to record the bad debts expense:

Bad Debts Expense 16,900

Allowance for Doubtful Accounts 16,900

<h3>What is an allowance for doubtful accounts?</h3>

A contra account called an allowance for doubtful accounts nets against the total receivables shown on the balance sheet to only show the amounts anticipated to be paid. The percentage of accounts receivable that are anticipated to be uncollectible is estimated by the allowance for doubtful accounts.

A negative balance in the allowance for doubtful accounts means that more accounts than anticipated have been written off. A contra asset account with a typical credit balance is the allowance for doubtful accounts.

Under the aging method, the adjusting entry for bad debt expense is calculated using the following formula:

Estimate of uncollectible accounts - (+) Current credit (debit) balance in the allowance for doubtful accounts = Bad debt expense

Hence, The adjusting entry that the company should pass at the end of the current year to record the bad debts expense is given above.

Learn more about the allowance for doubtful accounts:

brainly.com/question/17008094

#SPJ4

"Your question is incomplete, probably the complete question/missing part is:"

Bad Debts Expense 16,500

Allowance for Doubtful Accounts 16,500

Bad Debts Expense 16,100

Allowance for Doubtful Accounts 16,100

Bad Debts Expense 16,900

Allowance for Doubtful Accounts 16,900

Accounts Receivable 16,500

Bad Debts Expense 400

Sales 16,900

Accounts Receivable 16,900

Allowance for Doubtful Accounts 16,900

8 0

2 years ago

Auditors consider fi nancial statement assertions to identify appropriate audit procedures. For

user100 [1]

Answer:

a) 3

b) 4

c) 1

d) 6

e) 2

f) 5

Explanation:

6 0

3 years ago