Difference between revisions of "Safety stock"
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According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
:[[Safety stock]]. Inventory held at all times regardless of the quantity of inventory ordered using the EOQ model. | :[[Safety stock]]. Inventory held at all times regardless of the quantity of inventory ordered using the EOQ model. | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Safety stock]]. Extra inventory kept on hand in case demand is higher than expected or problems in the factory slow production. | ||
[[Category: Accounting]][[Category:Articles]] | [[Category: Accounting]][[Category:Articles]] | ||
Latest revision as of 18:45, 16 July 2020
Safety stock is inventory held at all times regardless of the quantity of inventory ordered using the EOQ model.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Safety stock. Inventory held at all times regardless of the quantity of inventory ordered using the EOQ model.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Safety stock. Extra inventory kept on hand in case demand is higher than expected or problems in the factory slow production.
