Answer the Following Question(s)using the Information Below

question 23

Multiple Choice

Answer the following question(s) using the information below:
The following information has been gathered for Product A:

-The inventory that is held to offset unexpected increases in demand or lead time and unexpected unavailability of stock from suppliers is primarily known as

• A)inventory stock.
• B)over-supply stock.
• C)safety stock.
• D)surplus stock.
• E)obsolete stock.

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Definitions:

Year 2

A reference to the second year in a given context, typically used in financial forecasting or product development timelines.

Return On Total Assets

A financial metric that measures a company's earnings before interest and taxes (EBIT) relative to its total asset value.

Net Profit Margin Percentage

A financial metric that shows what percentage of a company's revenues is left over after all expenses have been deducted, indicating profitability.

Return On Equity

A financial ratio indicating the profitability of a firm in relation to shareholders' equity, showing how effectively a company uses investors' funds to generate profit.