Most inventory models attempt to minimize:
A. the likelihood of a stockout.
B. the number of items ordered.
C. total inventory-based costs.
D. the number of orders placed.
E. the safety stock.
Most inventory models attempt to minimize total inventory-based costs. An inventory model is a mathematical algorithm that helps businesses determine how many stocks should be held on hand at any given time, how frequently orders should be placed, how many raw materials and goods should be stored, and how to track and ensure uninterrupted supplies of goods and raw materials to customers.
Frequently Asked Questions
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Inventory Quiz / MCQs | Options and Answers |
ABC analysis divides an organization’s on-hand inventory into three classes based upon | A) item quality B) unit price C) the number of units on hand D) annual demand E) annual dollar volume |
Inventory costing methods place primary reliance on assumptions about the flow of | a. resale prices. b. values. c. goods. d. costs. |
Extra units that are held in inventory to reduce stockouts are called | a) safety stock. b) creorder point. c) just-in-time inventory. d) demand variance. |
Goods in transit are included in a purchaser’s inventory | Check Options and Answer |
Which of the following should not be included in the physical inventory of a company? | a) Goods in transit from another company shipped FOB shipping point. b) Goods shipped on consignment to another company c) None of these choices is correct. d) Goods held on consignment from another company e) All of the answer choices are correct. |
The lifo inventory method assumes that the cost of the latest units purchased are | |
Ending inventory is made up of the oldest purchases when a company uses | |
A system that keeps track of each withdrawal or addition to inventory continuously is | |
The primary objectives of control over inventory are | |
Which of the following is not a lean inventory tactic? | |
A single-period inventory model is not applicable for | |
Costs included in the merchandise inventory account can include all of the following except: | |
A system that triggers ordering on a uniform time basis is called | |
Valley company’s adjusted trial balance on august 31, 2017, its fiscal year-end, follows. | |
Inventory problem for an office supply store crossword | |
The selection of an appropriate inventory cost flow assumption for an individual company is made by | |
Which of the following statements about a periodic inventory system is true? |
Which of the following typically is not considered a staff department?