Define the Following: Lead Time, Safety Stock, Reorder Point, Ordering

question 29

Essay

Define the following: lead time, safety stock, reorder point, ordering costs, economic order quantity.

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Definitions:

Net Loss

This occurs when a company's expenses exceed its revenues during a specific period of time, leading to a negative net income.

Ending Capital

The amount of capital a company or individual has at the end of a financial period, after all transactions have been accounted for.

Income Summary

An account in the general ledger used to transfer the balances of temporary accounts to permanent accounts at the end of an accounting period.

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to generate income or wealth.