Cynthia is interested in investing in Clothing Unlimited Inc. Which attribute from the stock quote can Cynthia use to determine how the stock has performed over the past year? A. current price
B. net change
C. open price
D. a positive or negative result for the one-year change
E. previous close price

D. a positive or negative result for the one-year change

Explanation:

The most relevant parameter of a stock's performance is the stock's returns. If a stock has been consistent in producing good returns,  the past financial year's results play a big role in determining whether to invest in its stock or not.

If Cynthia is interested in investing in Clothing Unlimited stock, she needs to look at its past performances and compare it with lay year's results. If the stock has been yielding consistent positive results, there is a big possibility that the trend will continue into the future.

Your question asks what the purpose of a safety stock is.

The reason why answer choice "B). control the likelihood of a stock out due to variable demand and/or lead time" is the correct answer because companies have safety stocks to control the chances of having a stock out.

Safety stocks are also known as a "reserve" for a company, in other words, stocks that a company doesn't touch. It's to ensure that companies don't go through a time where there's an increase in demand while there is a "delay" in production.

If a companies stock demand goes up, but then they can't "produce" the amount that is needed to meet the demand, then they will go through "stock out" and have to go through what is called "stock out costs."

Safety stocks are also known as a "rainy-day" stock, due to the fact that safety stocks are used when a company are not having a great day with the "demand" / "value" of their stocks. It's just to "ensure" / "keep the company safe" from a huge stock out.