Safety Stock Is

question 19

Multiple Choice

Safety stock is:

• A) extra quantity of goods above what is known to be produced by the supplier
• B) extra quantity of goods below what is known to be needed to meet sales or production.
• C) extra quantity of goods above what is known to be the economic order quantity.
• D) extra quantity of goods above what is known to be needed to meet sales or production.

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Definitions:

Government Deficit

Occurs when a government spends more money than it receives in revenue over a specific period, leading to borrowing or currency issuance.

Closed Economy

An economic system that doesn't engage in international trade, relying solely on its own resources and internal market for growth and development.

National Saving

The total amount of savings generated within a country from both the private and public sectors.

Private Saving

The portion of individuals' or households' income that is not consumed or spent on taxes and is instead saved for future use.