📊 Financial Management
Q. Which of the following relationships hold true for safety stock?
  • (A) the greater the risk of running out of stock, the smaller the safety of stock.
  • (B) the larger the opportunity cost of the funds invested in inventory, the larger the safety stock.
  • (C) the greater the uncertainty associated with forecasted demand, the smaller the safety stock.
  • (D) the higher the profit margin per unit, the higher the safety stock necessary.
💬 Discuss
✅ Correct Answer: (D) the higher the profit margin per unit, the higher the safety stock necessary.

You must be Logged in to update hint/solution

💬 Discussion

Related Posts

Q. NPV of a proposal, as calculated by RADR real CE Approach will be:

Q. The long-run objective of financial management is to:

Q. Debt to Total Assets of a firm is .2. The Debt to Equity boo would be:

Q. Business risk can be measured by:

Q. Which is the traditional method of capital budgeting

Q. If a project requires Rs.20,000 as initial investment and it will generate an annual inflow of Rs.2,000 for the 20 years, the pay back period will be ------------------

Q. The cost of capital is --------------

Q. ______ Means the basic criteria for the extension of credit to customers

Q. A sound dividend policy contains the ------------- features

Q. Which is the objective of a firm’s finance management?

📱 Download Our App

Learn MCQs on the go with our easy-to-use Android app

Get it on Google Play

📊 Question Analytics

👁️
624
Total Visits
📽️
2 y ago
Published
🎖️
Priyanka Tomar
Publisher
📈
81%
Success Rate