Figure 7-1 Use the Graph Below to Answer the Question(s)

question 19

Multiple Choice

Figure 7-1
Use the graph below to answer the question(s) .
-Which of the following is true under the Periodic Review System:

• A)a lower level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon
• B)a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon
• C)it is more expensive to administer
• D)The only uncertainty is the magnitude of demand during the delivery lead time
• E)there are no discrepancies between physical inventory and the stock record

Recognize the varied scales of client systems, including large organizations.

Understand the client's role in assessment and planning processes.

Understand the concept of net working capital and factors that influence its calculation.

Describe the difference between temporary and permanent working capital.

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Definitions:

Progressive

Referring to a tax system where the tax rate increases as the taxable amount increases, ensuring higher earners pay more in taxes.

Capital Gains

The increase in value of an asset or investment over its purchase price, realized upon the sale of the asset.

Lower Rates

Typically refers to reduced interest or financing rates, often used to stimulate borrowing or economic activity.

Proprietorships

A business owned and operated by a single individual, where there's no legal distinction between the owner and the business entity.