The correct answer is: C. danger level.
The danger level is the level at which normal issue of material are stopped, but issued under special condition. It is a level at which the stock of a material is low and there is a risk of running out of stock. When the stock level reaches the danger level, the company may issue materials only under special conditions, such as when a customer has a critical need for the material.
The maximum stock level is the level at which the company should not exceed. It is the level at which the company has too much stock of a material and is incurring unnecessary costs.
The minimum stock level is the level at which the company should not fall below. It is the level at which the company has enough stock of a material to meet its normal needs.
The average stock level is the average of the maximum and minimum stock levels. It is the level at which the company should aim to keep its stock of a material.