If Freemantle Engineering Company Has a Safety Stock of 36

question 120

Multiple Choice

If Freemantle Engineering Company has a safety stock of 36 units of a particular item and the average monthly demand is 270 units,how many days can be covered if the shipment from the supplier is delayed by 12 days? Assume a 360 day year.

• A)8.0 days
• B)12.0 days
• C)4.0 days
• D)6.7 days

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Definitions:

Classified Balance Sheet

A financial statement that groups assets, liabilities, and equity into subcategories, providing detail and clarity to financial positions.

Adjusted Trial Balance

A list of all ledger accounts and their final balances after adjustments have been made, used as the basis for preparing financial statements.

End-Of-Period Spreadsheet

A tool used in accounting to compile all account balances at the period's end, aiding in the preparation of financial statements.

Salaries Expense

The total amount paid to employees for services rendered over a specific period, recorded as an expense in financial accounting.