Which One of the Following Is Implied by a

question 157

Multiple Choice

Which one of the following is implied by a " lead time " service level of 95 percent?

• A)Approximately 95 percent of demand during lead time will be satisfied.
• B)The probability is 95 percent that demand during lead time will not exhaust the inventory.
• C)The probability is 95 percent that demand during lead time will exactly equal the amount on hand at the beginning of lead time.
• D)The probability is 95 percent that demand during lead time will not exceed the amount on hand at the beginning of lead time.

Grasp the adjustments needed under the indirect method for cash flow statement preparation.

Identify the categories of cash flows in the statement of cash flows.

Understand the concept of cash equivalents.

Recognize transactions affecting cash flows from financing activities.

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