Carducci Corporation Reported Net Sales of $3

question 59

Multiple Choice

Carducci Corporation reported Net Sales of $3.6 million and beginning Total Assets of $0.9 million and ending Total Assets of 1.3 million. The average total asset amount is:

• A)$2.3 million.
• B)$2.7 million.
• C)$0.25 million.
• D)$0.36 million.
• E)$1.1 million.

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Definitions:

Safety Inventory

Additional inventory kept to protect against variability in demand or supply, ensuring that stockouts are minimized.

Cycle Service Level

A measure of a company's ability to deliver products to customers within the committed time frame, often used as an indication of inventory management effectiveness.

Fill Rate

The percentage of customer demand that is met without backorders or stockouts, reflecting a company's ability to satisfy orders with available inventory.

Customer Fill Rate

A measure of the ability of a supply chain to deliver the requested product in the quantity and time agreed upon by the customer.