Use the Table Below to Answer the Following Question(s)

question 8

Multiple Choice

Use the table below to answer the following question(s) .
Below is the spreadsheet for an economic order quantity model.

Assume that the distribution of demand is normal with a mean of 20,000 and standard deviation of 2,000.
-What is the value of safety stock?

• A)45
• B)71
• C)120
• D)95

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Definitions:

Understated

Describes financial statements or figures that are reported at a value lower than the actual or correct value, potentially misleading financial analysis.

Running Balance

A continuously updated balance that reflects all transactions, often seen in bank statements and accounting ledgers.

Journal

A chronological record of all financial transactions, providing the initial point of entry for all accounting data into the accounting system.

Metric Unit

A system of measurement based on meters, liters, and grams, used internationally for scientific and commercial purposes.