Safety Stock Is Only Used in Continuous Review (Q) Inventory

question 83

True/False

Safety stock is only used in continuous review (Q) inventory systems, not in periodic review (P) inventory systems.

---

Definitions:

Processed Further

A decision in cost accounting regarding whether or not to continue adding value to a product beyond the split-off point.

Differential Revenue

The difference in revenue expected from two different business decisions or scenarios, often considered when evaluating options.

Variable Costs

Costs that vary in total dollar amount as the level of activity changes.

Short-Run Price

The price level of goods or services in a market that is determined over a short period, where some costs can be considered fixed.