Which of the Following Factors Does Not Contribute to the Increase

question 49

Multiple Choice

Which of the following factors does not contribute to the increase of buffer stock levels?

• A) The high service level that a retailer tries to achieve
• B) High fluctuations in demand
• C) Long lead time for delivery from the vendor
• D) Fluctuations in vendor lead time
• E) Frequent store deliveries

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Definitions:

Line Department

A department that directly advances the core work or goals of an organization, as opposed to a support or administrative department.

Staff Department

A unit within an organization that provides specialized services or support to other departments, but does not produce direct outputs.

Managerial Accounting

A branch of accounting focused on providing information to managers within the organization to assist in decision-making.

Financial Accounting

The field of accounting that focuses on preparing reports which provide information to external stakeholders about the financial position and performance of a company.