What Is Extra Inventory Held in the Event Demand Exceeds

question 12

Multiple Choice

What is extra inventory held in the event demand exceeds supply?

• A) Safety inventory
• B) Cycle inventory
• C) Performance inventory
• D) Capacity inventory

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Definitions:

Compounded Annually

This term describes interest on an investment that is calculated once a year, where the interest added also earns interest in subsequent years.

Withdrawals

Money taken out from a business by its owners for personal use.

Compound Interest

Interest calculated on the initial principal as well as the accumulated interest of previous periods of a deposit or loan.

Annual Payments

Regular payments made once a year, often used in the context of loans, insurance, or annuities.