Safety Inventory Is Inventory Carried for the Purpose of Satisfying

question 92

True/False

Safety inventory is inventory carried for the purpose of satisfying demand that exceeds the amount forecasted for a given period.

---

Definitions:

Cash Account

An account that records all transactions involving cash, including receipts and payments.

Ending Balance

The amount of money remaining in a financial account at the end of a reporting period, after all transactions have been accounted for.

Cash Account

An account that records cash transactions, including cash receipts and disbursements.

Direct Labor Costs

Expenses directly tied to the production of goods or services, which include wages and benefits paid to employees who physically produce a product.