Which of the Following Values for "Z" Should We Use

question 49

Multiple Choice

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

• A) 1.64
• B) 1.96
• C) 2.05
• D) 2.30
• E) None of the above

---

Definitions:

Transfer Price

The price charged for goods or services transferred between departments or subsidiaries of the same company.

Part Y6P

Could refer to a specific component or piece identified by the part number "Y6P"; likely specific to a certain type of machinery, equipment, or product line.

Assembly Division

A segment of a manufacturing company responsible for putting together the final products.

Variable Cost

Expenses that change in proportion to the level of production or sales volume, such as raw materials and direct labor.