What is a system for ordering items that have little or no value
What is a system for ordering items that have little or no value at the end of a sales period? furniture. a fixed-period system.
How often are Class B items counted
Class B (or class 2) covers electric wiring, upholstery for seats, and Plexiglas. How often are class B items counted? inventory categories by annual usage.
What is the objective of inventory management
The objectives of inventory management are to provide the desired level of customer service, to allow cost-efficient operations, and to minimize the inventory investment.
When the stock of an item is depleted an order for that item must either wait until the stock is replenished or Cancelled
False (When the stock of an item is depleted, an order for that item must either wait until the stock is replenished or be canceled. There is a trade-off between carrying stock to satisfy demand and the costs resulting from stock outs.
How many kind of inventory inventories does manufacturing company have
A typical manufacturer will identify three types of inventory: raw materials, work in process and finished goods.
Is the process of changing and improving resources to create goods or services
Chapter 8 Production of Goods Study Guide
|conversion||The process of changing and improving resources to create goods or services.|
|mass production||Manufacturing goods in large quantities using standard techniques.|
Can be defined as the amount of inventory carried in addition to the expected demand
Safety stock can be defined as the amount of inventory carried in addition to the expected demand. If demand for an item is normally distributed we plan for demand to be twice the average demand and carry 2 standard deviations worth of safety stock inventory.
Is the stock of any item or resource used in an organization
Inventory is the stock of any item or resource used in an organization. An inventory system is the set of policies that controls and maintains inventory levels .
What is meant by the magnitude of a conversion process
The magnitude of change of a conversion process is the degree to which the resources are physically changed.
What describes the characteristics of a product that satisfy wants and needs
“Quality is the degree to which a specific product satisfies the wants of a specific consumer.” (H. L.
Which of the following is not considered as inventory to a business
Answer and Explanation: The correct option is (A). The cost of production labor is not a component of inventory cost.
Which of the following is a function of inventory
The primary function of inventory is to use marketing and production to increase profitability, to get the maximum amount for the business' investment. There are other functions of inventory, such as balancing supply and demand, improving efficiency, establishing a safety stock and geographical specialization.
Which of the following is true for inventory control
The optimum level of inventory is popularly referred to as the ………..
|Q.||Which of the following is true for Inventory control?|
|B.||Inventory carrying costs increases with quantity per order|
|C.||Ordering cost decreases with lo size|
Which of the following would not generally be a motive for a firm to hold inventories
|Q.||Which of the following would not generally be a motive for a firm to hold inventories?|
|B.||To provide a stock of goods and will provide a selection for customers|
|C.||To take advantage of quantity discounts|
|D.||To minimize holding costs|
|Answer» d. To minimize holding costs|
Which of the following is not one of the Assumption of the basic EOQ model
The assumptions behind the economic order quantity (EOQ) model include all of the following EXCEPT: a constant rate of demand.
Which of the following is not an example of how every warehouse in an industry segment is different
Which of the following is NOT an example of how every warehouse in an industry segment is different? 3) Weather does not have any impact on the difference of an industry segment in a warehouse.
Which of the following types of inventory has completed the production process and is ready for sale
Finished goods inventory is manufactured items that are completed and ready for sale.
What type of account is finished goods inventory
The finished goods inventory account is used to record the costs of products that are complete and ready to sell. These three inventory accounts are assets accounts that appear on the balance sheet. The costs of completed goods that are sold are recorded in the cost of goods sold account.