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r-ruslan [8.4K]
3 years ago
9

The purpose of safety stock is​ to: A. eliminate the possibility of a stockout. B. control the likelihood of a stockout due to v

ariable demand​ and/or lead time. C. eliminate the likelihood of a stockout due to erroneous inventory tally. D. protect the firm from a sudden decrease in demand. E. replace failed units with good ones.
Business
1 answer:
NeX [460]3 years ago
6 0
<h3>Hello there!</h3>

Your question asks what the purpose of a safety stock is.

<h3>Answer: B). control the likelihood of a stock out due to variable demand​ and/or lead time.</h3>

The reason why answer choice "B). control the likelihood of a stock out due to variable demand​ and/or lead time" is the correct answer because companies have safety stocks to control the chances of having a stock out.

Safety stocks are also known as a "reserve" for a company, in other words, stocks that a company doesn't touch. It's to ensure that companies don't go through a time where there's an increase in demand while there is a "delay" in production.

If a companies stock demand goes up, but then they can't "produce" the amount that is needed to meet the demand, then they will go through "stock out" and have to go through what is called "stock out costs."

Safety stocks are also known as a "rainy-day" stock, due to the fact that safety stocks are used when a company are not having a great day with the "demand" / "value" of their stocks. It's just to "ensure" / "keep the company safe" from a huge stock out.

<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>
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Answer: Please refer to Explanation

Explanation:

When Evaluating a country's attractiveness for investment, there are several factors that should be evaluated. Key amongst them are, Benefits, Costs and Risks.

Under Benefits, the economy is evaluated based on the benefits it brings to the table. It's strengths and Opportunities. The goal is to see if these benefits present the company with adequate enough incentives to want to invest.

Under Costs, the cost of setting up and thriving is evaluated. What does the company have to pay and who do they have to pay it to in order to set up properly.

Under Threats, the factors that could adversely affect the company as a result of Investing in the country are evaluated. This is very important to know so that if need be, contingencies can be established.

Classifying the above.

1. Middle-class population growth potential. EVALUATE BENEFITS.

The middle class are the main purchasers of goods and services in the economy. In evaluating benefits the potential growth rate of the middle class should be evaluated.

2. First-mover advantages. EVALUATE BENEFITS.

Evaluating the potential benefits to be had from investing first in a country is part of Benefits Evaluation.

3. Bribe payments. EVALUATE COSTS.

Bribery payments are a cost when it comes to setting up in corrupt nations. They need to be evaluated as costs.

4. Unexpected political change. EVALUATE RISKS.

Under the evaluation of risks, this should be evaluated because a new Political leadership could have a different attitude to the company and this is a threat.

5. Infrastructure issues. EVALUATE COSTS.

Under the evaluation of cost there must be an evaluation of infrastructural issues in the country. If there are infrastructural challenges, the cost of setting up will be higher because depending on the infrastructure you'd have to bring in infrastructure from other areas and that would be expensive.

6. Resolving contract disputes. EVALUATE COSTS.

What are the costs of resolving contract disputes in the country. If they are favourable then the country is fine.

7. Free market economy. EVALUATE BENEFITS.

A free Market Economy is very useful to Entreprise. The type of economy needs to be evaluated therefore to see if it is a Free Market Economy that can benefit the company.

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How stable is the economy of the country in question. A country with an unstable Economy is one with a lot of Uncertainty and any company going in there will have to risk suffering losses if the Economy goes through peril.

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5 0
3 years ago
Read 2 more answers
Lump-sum taxes are rarely used in the real world because:_______________
labwork [276]

Answer:

c. lump-sum taxes are often viewed as unfair because they take the same amount of money from both poor and rich.

Explanation:

To understand this question, you have to first understand what lump-sum taxes are.

Lump-sum taxes are a system of taxes where everybody pays the same amount of tax no matter their economic status, or their actions. Basically, lump-sum taxes take the same amount of money from the rich and the poor, hugely increasing the burden on the poor and lessening that of the rich.

As an example, a lump-sum tax of $100 would require everybody to pay $100. To a person earning, say $120, that would be a huge hit, and be a huge burden on his normal life. However, to a rich person who earns, say, $10000, that would be much more easier for the rich person.

Hence, lump-sum taxes are often viewed as unfair because of the unfair advantage the rich have over the poor in tax-paying.

Hope this helped!

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3 years ago
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Answer:

$268,696.93

Explanation:

Where an equal amount of money is saved periodically to earn interest at a particular rate of interest to accumulate a target amount in the future , it is called a sinking fund. The purpose could be for retirement, loan repayment or asset acquisition

The sum accumulated (deposit plus interest earned) at the end of the final period is known as the Future Value (FV) of the sinking fund.

The FV is determined as follows:

FV = A × ((1+r/m)^(n× m) - 1)/(r/m))

where FV- future value, A- annual cash flow, r-rate of return, n- number of years, m- number of compounding periods in a year.

<em>so we can apply  this to our question</em>

a = 1700, r - 8%= 0.08, m=4, n- 18

FV = 1,700 ×( (1+0.08/4)^(18 × 4) - 1)/(0.08/4))

     = 1700  × 158.0570

     =$268,696.93

The account will have $268,696.93 at he end of he 18 years

5 0
3 years ago
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