AICPA CPA-Business Exam - Topic 2 Question 16 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 16
Topic #: 2

[All CPA-Business Questions]

The amount of inventory that a company would tend to hold in safety stock would increase as the:

ACost of carrying inventory decreases.

BVariability of sales decreases.

CCosts of running out of stock decreases.

DLength of time that goods are in transit decreases.

Show Suggested Answer

Suggested Answer: A

Choice 'a' is correct. As the cost of carrying inventory decreases, safety stock would tend to increase to reduce the risk of stock outs.

Choice 'b' is incorrect. As sales become more predictable (sales variability decreases), less (not more) safety stock would be needed because the risk of stock outs would have decreased.

Choice 'c' is incorrect. If the cost of stock outs decrease, safety stock would decrease.

Choice 'd' is incorrect. If lead-time decreases, safety stock would decrease.

by Chauncey at May 06, 2022, 08:46 AM

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5 months ago

Hmm, I'm not totally sure about this one. I know Avaya Aura Contact Center has a lot of different components, and I'm not super familiar with all of them. I'll have to think this through carefully.

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I'm pretty confident the answer is B. Automated Personalization is all about using machine learning to dynamically personalize the experience for each visitor, so the system should be able to figure out the best goal to optimize towards.

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Shelia

5 months ago

I've got this! The number of ways to choose 4 heads out of 7 tosses is 7 choose 4, which is 35. That's the answer.

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AICPA CPA-Business Exam - Topic 2 Question 16 Discussion

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