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.
Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue
<h3>What is Interest?</h3>
This refers to the amount or rate that is added to a principal amount and this is usually done when a loan is collected.
Hence, we can see that when plant assets are being constructed, interest is capitalized and the main reason why this happens is that the asset is not generating revenue.
Furthermore, actual interest is the only thing that should be capitalized and this is because, during construction, the asset is not generating revenue and therefore companies should defer (capitalize) interest cost.
Thus, Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue.
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Using the direct write-off method, Hanes will record the write-off of this account by <u>debiting</u> the Bad Debts Expense account.
<h3>What is the direct write-off method?</h3>
The direct write-off method is one of the methods for writing off uncollectible accounts.
With the direct write-off method, the bad debts expense account is <u>debited</u> while the accounts receivable are <u>credite</u>d.
Thus, using the direct write-off method, Hanes will record the write-off of this account by <u>debiting</u> the Bad Debts Expense account.
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Per capita GDP is GDP divided by total population.
<h3>What is a Per capita GDP?</h3>
This refers to an economic tool that measures the total output of a country by taking a gross domestic product and divides it by number of people.
Hence, the Per capita GDP is derived by calculating the GDP divided by total population.
Therefore, the Option E is correct.
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Outsourcing because a third party is someone who is not one of the main people involved in a business.