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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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ratelena [41]

Answer:

$12.50

Explanation:

Variable costs are those costs which changes with the change in activity driving the cost (Sales. production etc.). It can be direct or indirect costs.

Whereas fixed costs are those costs which remains constant and do not change with the change in activity.

All the following costs are variable costs

                                                          Average Cost per Unit

Direct materials                                   $6.45

Direct labor                                          $3.30

Variable manufacturing overhead     $1.25

Sales commissions                              $1.00

Variable administrative expense       <u>$0.50</u>

Total variable cost per unit                <u>$12.50</u>

All the following costs are fixed costs.

Fixed manufacturing overhead         $3.00

Fixed selling expense                        $1.05

Fixed administrative expense           $0.60

3 0
3 years ago
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $800 account of a customer,
saul85 [17]

Answer:

Explanation:

The journal entries are shown below:

On January 31

Allowance for doubtful accounts A/c Dr $800

         To Account receivable A/c $800

(Being the written off amount is recorded)

On January 31

Account receivable A/c Dr $300

           To Allowance for doubtful accounts A/c $300

(Being the reverse entry is made)

On March 9

Cash A/c Dr $300

      To Accounts receivable A/c $300

(Being the amount is collected)

7 0
3 years ago
marks corporation has two operating departments, drilling and grinding, and an office. the three categories of office expenses a
Scorpion4ik [409]

The correct answer is $35750

The amount of depreciation that should be allocated to drilling for the current period is $35750

<h3>How does depreciation work?</h3>

Depreciation is the process of subtracting the entire cost of an expensive item you purchased for your company. However, you write off portions of it over time rather than completing it altogether in one tax year. Depreciating assets gives you more control over your budget because you may schedule how much money is written off annually.

<h3>How much depreciation should be devoted to drilling throughout the current time frame?</h3>

Office costs: Salaries are $30,000, depreciation is $20,000, and advertising is $40,000. The total number of employees for drilling and grinding is 2500.

The overall net sales for drilling are 375 000, for grinding they are 450 000.

Drilling costs are 75,000, grinding costs are 125,000, and overall costs are 200000.

then,

Salaries: $30,000×\frac{1000}{2500}=$12,000

Depreciation: $20,000×\frac{75000}{200000}=$7,500

Advertising: $40,000×\frac{325000}{800000} =$16,250

Total $35,750

To know more about depreciation work visit:

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question options are wrong the correct question is:

marks corporation has two operating departments, drilling and grinding, and an office. the three categories of office expenses are allocated to the two operating departments using different allocation bases. the following information is available for the current period: office expenses total allocation base salaries $ 30,000 number of employees depreciation 20,000 cost of goods sold advertising 40,000 percentage of total sales department number of employees sales cost of goods sold drilling 1,000 $ 325,000 $ 75,000 grinding 1,500 475,000 125,000 total 2,500 $ 800,000 $ 200,000 the amount of depreciation that should be allocated to drilling for the current period is: multiple choice $25,000. $12,500. $7,500. $20,000. $35750. this is a correct option.

8 0
1 year ago
Patio Creations is a manufacturer of outdoor furniture. Typically, customers purchase the company's products as the summer seaso
dmitriy555 [2]

The supply chain strategy that would work best for Patio Creations is the push strategy. This is further explained below

<h3>What is a push strategy?</h3>

A push marketing strategy, also known as a push promotional approach, is sim[ply defined as mone in which a company strives to take push its items to customers.

In conclusion, the push strategy helps the company strives to push its items to customers.

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7 0
1 year ago
Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. What would be the futur
inysia [295]

Answer:

$4,000

Explanation:

P- percent

r-rate

t-time

P: 10000

R:8 but u have to move it two spots so it would be 0.08

T:5 years

10,000(0.08) (5) = 4,000

$4,000

That's how I do it. I hope it helps!

5 0
2 years ago
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