Figure 7-1 Use the Graph Below to Answer the Question(s)

question 22

Multiple Choice

Figure 7-1
Use the graph below to answer the question(s) .

-In the absence of demand and delivery lead time uncertainty,reorder point is the ____.

• A) demand during lead time
• B) safety stock
• C) sum of demand during lead time and safety stock
• D) economic order quantity
• E) average inventory

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Definitions:

Repossessed Inventory

Goods taken back by a seller or lender from the buyer, typically due to failure to make required payments.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Persuasive Evidence

Documentation or information that is sufficiently reliable and convincing to influence a person's beliefs or decisions, often mentioned in the context of sales and revenue recognition.

Revenue Recognition

The accounting principle that dictates the specific conditions under which revenue is recognized and recorded.