Which of the Following Values for Z Should We Use

question 79

Multiple Choice

Which of the following values for z should we use in as a safety stock calculation if we want a service probability of 98 percent?

• A) 1.64
• B) 1.96
• C) 2.05
• D) 2.30
• E) None of these choices are correct

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Definitions:

Cost of Goods Manufactured

The total cost incurred to produce goods during a specific period, including materials, labor, and overhead costs.

Cost of Goods Sold

The total expense directly associated with producing or purchasing goods that have been sold.

Period Cost

Costs that are expensed in the period they are incurred and are not directly tied to the production of goods.

Product Cost

The total cost to produce a product, including direct labor, materials, and manufacturing overhead.