The College Bookstore Sells a Unique Calculator to College Students

question 6

Multiple Choice

The College Bookstore sells a unique calculator to college students.The demand for this calculator is constant at 20 units per day.The lead time for this calculator is variable at an average of 9 days with a standard deviation of 2 days.Compute the statistical reorder point that results in a 95 percent in-stock probability.Choose the closest answer.

• A) 26 units
• B) 46 units
• C) 182 units
• D) 226 units
• E) 246 units

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Definitions:

Responsibility Accounting

A financial recording system that accumulates, consolidates, and presents finance-related data pertaining to the obligations of specific managers or units.

Responsibility Centres

Segments within an organization for which individual managers are accountable, focusing on financial performance and operational efficiency.

Participative Budgeting

A budgeting process where workers at all levels are involved in setting budget goals and objectives, fostering collaboration and buy-in.

Top Management

The highest level of managerial staff responsible for setting strategic goals and leading an organization.