Which of these is defined as the excess amounts of a current asset kept on hand to meet unexpected shocks in demand?
A) Liquid current assets
B) Safety stock
C) Overnight securities
D) Float

Question

Quizplus · Accepted Answer

Safety stock is the term used to describe the additional quantity of an item held in inventory in order to reduce the risk that the item will be out of stock. It acts as a buffer against unexpected increases in demand or delays in supply delivery.

Which of These Is Defined as the Excess Amounts of a Current