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  3. Study Set
    Cornerstones of Cost Management Study Set 3
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    Exam 20: Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints
  5. Question
    Safety Stock Is
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Safety Stock Is

Question 36

Question 36

Multiple Choice

Safety stock is


A) the cost of holding inventory.
B) a non-value activity and should never be considered.
C) not considered when calculating the reorder point.
D) extra inventory carried to serve as insurance against fluctuations in demand.

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