All of the Following Are Contra Revenue Accounts Except

question 197

Multiple Choice

All of the following are contra revenue accounts except

• A) sales revenue.
• B) sales allowances.
• C) sales discounts.
• D) sales returns.

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Definitions:

Safety Inventory

A stock buffer maintained to mitigate risk of stockouts due to demand variability and supply chain uncertainties.

Lead Time

The duration between the initiation and completion of a process, such as the time from placing an order to its delivery.

Standard Deviation

A measure of the dispersion or variability within a set of data points, indicating how much variation exists from the average.

ESC (Expected Shortage per Cycle)

The average amount of inventory shortage anticipated during a single replenishment cycle in inventory management.