Safety Stock

Accounting Terms Dictionary

Select a letter below to view all accounting terms that begin with that letter.

Safety Stock

Safety stock is extra inventory a business keeps in case of emergency.

Lakisha’s firm has an economic order quantity or reorder point of 10 units, but she always keeps 15 on hand in case a big customer comes in. The extra 5 is her safety stock.

There is currently no content classified with this term.

Get instant access to step-by-step instructions on how to apply and sit for the CPA Exam.