Additional Inventory Kept Over and Above the Average Amount Required

question 21

Multiple Choice

Additional inventory kept over and above the average amount required to meet demand is called ____ inventory.

• A)Seasonal
• B)Work-in-process
• C)Finished goods
• D)Safety stock

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Definitions:

Forward Rate

The agreed-upon exchange rate for a currency pair to be traded at a future date, used in forward contracts.

Exchange Rate

The cost of converting one currency into another, establishing the equivalent worth of one currency in relation to another.

Spot Rate

The immediate market price for a particular asset allowing for its instant purchase or sale.

Repatriating Profits

Refers to the process of transferring the profits earned from a foreign subsidiary back to the company’s home country.