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.

The Correct Answer for the given question is Option C. total inventory-based costs.

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

Which of the following would not generally be a motive for a firm to hold inventories?

A. To decouple or separate parts of the production process
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

The Correct Answer for the given question is option D. To minimize holding costs

Which of the following is an element of inventory holding costs?

A) housing costs
B) material handling costs
C) investment costs
D) pilferage, scrap, and obsolescence
E) All of the above are elements of inventory holding costs.

The Correct Answer for the given question is option E) All of the above are elements of inventory holding costs.

Which of the following is not an inventory

A. Machines
B. Raw material
C. Finished products
D. Consumable tools

The Correct Answer for the given question is option A. Machines

We can switch from accounting voucher to inventory voucher pressing

A. F2
B. Alt +F1
C. Ctrl + F1
D. F11

The Correct Answer for the given question is option B. Alt +F1

Inventory control in production planning and control aims at

A. Achieving optimization
B. Ensuring against market fluctuations
C. Acceptable customer service at low capital investment in inventory
D. Discounts allowed in bulk purchase

The Correct Answer for the given question is option C. Acceptable customer service at low capital investment in inventory

The most important function of inventory control is

A. Stock control system
B. To run the stores effectively
C. Technical responsibility for the state of materials
D. All of the above

The Correct Answer for the given question is option D. All of the above

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?

Management Notes

Most inventory models attempt to minimize: