The periodic inventory system O A. works well for businesses in which the inventory is large in size or dollar amount OB. involves the use of inventory costing methods O C. is more difficult to maintain than a perpetual inventory system O D. cannot be used with a specific identification costing method
Q: All of the following statements concerning shortage costs are true Except: Shortage costs…
A: ANSWER: OPTION (b) IS INCORRECT OPTION.
Q: Explain the kinds of information that is shown in a perpetual inventory record
A: Perpetual inventory is a form of management accountancy that documents the buying and selling of…
Q: 2. An auto parts store sells 10 units of engine oil daily. The store's supplier requires a 7 day…
A: Given Daily demand (d) = 10 Lead time (L) = 7
Q: In which of the method of inventory valuation, control of inventory is not possible a. Continuous…
A: Inventory valuation is the monetary amount associated with the goods in the inventory at the end of…
Q: An electronic system that records actual sales at time of sale O a. Point of sale (POS) system O b.…
A: Sales professionals use different tools to evaluate their performance. Sales tools like customer…
Q: Lead time for one of your fastest-moving products is 19 days. Demand during this period averages 90…
A: Re-order point is the point at which a company has to order again to meet customer demand.
Q: Under which circumstances would you use single period/newsboy model for inventory management
A: Inventory is the term used to refer to the products that are available for sale and the raw…
Q: Which of the following is an element of inventory holding costs? All of these are elements of…
A: Inventory is the raw materials and resources that help the business to manufacture the finished…
Q: Which of the following orders is most useful to short sellers who want to limit their potential…
A: Primary motive of short selling is to earn profit from fall in price of the commodity and also to…
Q: Shouldn’t a company always select the inventory method that results in the highest net income so the…
A: Below is the solution:-
Q: Explain why a proper cutoff of purchases and sales is heavilydependent on the physical inventory…
A: Inventory refers to the stock of the raw material or the finished goods which is stored by the…
Q: Inventory holding costs are the costs of storing products until they are purchased or shipped to…
A: Inventory- The raw materials used in production, as well as the products manufactured that are…
Q: An inventory system that is based on the idea that all required inventory items should be supplied…
A: Inventory management is described as a process of managing, tracking, and controlling the inventory…
Q: The National Company uses 150,000 gallons of hydrochloric acid per month. The cost of carrying the…
A: Solution is as follows:
Q: Inventory turnover is O a. Higher when product takes longer time to manufacture O b. Ratio of…
A: Inventory Performance measures and system-wide approaches are used to calculate the accuracy of the…
Q: A. An example of a dependent demand inventory item in truck manufacturing is/are: a. New…
A: Production is the process of manufacturing the finished products and services using the raw…
Q: a) If cooking oil can be ordered as needed, what reorder point should be used? Answer in 2 decimal…
A:
Q: The principal goal of inventory management systems is to balance the costs of ordering, shipping,…
A: Inventory is a term that defines the raw materials, and parts that are used by a company for selling…
Q: You work for the Brad's Nailer Company which manufactures three types of nailers: a pneumatic model,…
A: X = Pneum. units to be produced Y = ProLine units to be produced Z = Cordless units to be produced…
Q: It is costly to hold inventory, but inventory can also be useful in a process because:a. adding…
A: Inventory management is a process of storing, utilizing, and keeping a check on the inventory levels…
Q: Discuss costs must be balanced and minimised through inventory control
A: Inventory management is the activity of maintaining the correct number of products at the proper…
Q: Uncommitted inventory is called a. Free inventory b. Safety stock c. Obsolete inventory d.…
A: Inventory is the products or material that an organization produce to achieve the desired goal.
Q: Explain what are the conditions that must exist for good inventory management ?
A: Inventory management is the management in which stock is sourced, stored, and sold in the market.
Q: . The overall objective of inventory management is to achieve satisfactory levels of customer…
A: Concept Introduction Inventory Management can be define as a process where plans are made to…
Q: A business introduces e-purchasing and is able to process the same number of orders with lesser…
A: The production plant is the place where the company set up the system to manufacture the finished…
Q: Demand for an item is constant at 500 units a year. Unit cost is $50, reorder cost is $80 and…
A: Economic order quantity (EOQ) = Square root of ( 2*Annual demand*ordering cost/handling cost) =…
Q: A firm has $5,000,000 of inventory on average and annual sales of $30,000,000. Assume there are 365…
A: Inventory conversion period means the number of days taken for converting the raw materials into…
Q: Distinguish between physical inventory systems and perpetual inventory systems. Give an example of a…
A: The perpetual Inventory System is a method of keeping track of the inventories in the business where…
Q: (a) Discuss the functions that inventory serves in an organisation & Explain the difference between…
A: Inventory is an important part of any business because it is related to stock management and storage…
Q: Calculate the Economic Order Quantity
A: Given, Order cost S = $500 Holding cost H = $3 Annual Demand D = 1552 units Formula for Economic…
Q: Which of the following is less likely to represent an inventory ordering cost? a. Warehousing costs…
A: Inventory costs are every expense linked with ordering, holding, and maintaining the inventory or…
Q: What is The basic equation for keep track of inventory and its cost
A: Inventory tracking is an important factor for a successful supply chain. As most of the costs are…
Q: Safety stocks are kept O a. To provide protection against the uncertainties of supply and dema O b.…
A: Option A is correct To provide protection against the uncertainty of supply and demand
Q: Inventory records provide a wide range of information on the items exist,which do not, and which…
A: Here, Question has asked about the Inventory records that provide a wide range of information on the…
Q: Overall Objective of inventory management is to O a. keeping the lowest inventory on hand to reduce…
A: Reliability in the product shows its worth and ensures that the product will not fail when required…
Q: company from United kingdom and write about their inventory management system and how they are…
A: Inventory management is a task for keeping track of the flow of inventory. It starts from the…
Q: Why would just-in-case' or conventional inventory management methods prefer to 'just-in-time.'?
A: The forecasting technique and improving the order related to the safety stock are used in…
Q: Explain why data in the warehouse cannot be updated
A: Data warehousing is the storage of information over time by a business or other organization. New…
Q: Inventory order is placed when O a. Only when projected or actual stocks on hand is below zero O b.…
A: Inventory management is one of the main operations of warehousing and operations management.
Q: In your own words, discuss the differences between a perpetual and periodic inventory system. Your…
A: Inventory is the stock, items, and raw material that the company stores in the warehouse to use in…
Q: Which of the following hold the most for a Periodic review inventory system? O a. Uses two bin…
A: A cost is the value of money that is used to produce something or provide a service, and is not…
Q: Describe the perpetual and the periodic inventory systems. How are they different?
A: Perpetual and Periodic inventory: Perpetual vs Occasional Stock Framework Interminable stock…
Q: Which inventory system is the preferred inventory system since orders are not built until the…
A: Note- Hi! Thank you for the question As per the honour code, We’ll answer the first question since…
Q: Inventory carrying costs differ from inventory holding costs when: * The owner of the inventory…
A: Companies can achieve lower production costs by reducing the carrying cost or holding cost, if…
Q: Discuss the cost penalties incurred by a firm that holds too much inventory andone that holds too…
A: It can lead to unnecessary inventory holding costs that can be used for other purposes. It can also…
Q: Refers to goods and merchandise at the beginning of operation of business or accounting period. A.…
A: A Merchandise refers to any product that is manufactured for selling. Therefore, any business person…
Q: The company believes that a proper inventory control system (techniques) helps the enterprise in…
A: Inventory management helps in the effective management of inventory and is not only time-saving but…
Q: Which of the following is not considered as inventory under PAS 2? O Abnormal amount of waste…
A: Inventories include assets held for sale in the ordinary course of business (finished goods), assets…
Q: . Other income and expenses are items that are not related to the primary operating activity 2.…
A: Statement 1 is True. Statement 2 is True.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 21- Which one of the following represent FIFO method of inventory evaluation? a. Old items remain in inventory b. Old merchandise is sold first c. New merchandise is sold first d. Average number of goods are soldABC classification divides on-hand inventory into three classes, generally based upon a. item quantity. b. unit price. c. the number of units on hand. d. annual demand. e. annual dollar value.In which of the method of inventory valuation, control of inventory is not possible a. Continuous inventory system b. Perpetual inventory system c. Periodic inventory system d. ABC analysis
- Knowing how to use the ABC analysis, make up a list of 10 items in a stores inventory, then decide which 10 items sold at the store would constitute 80% of the revenue and create a Word document using the ABC analysis.Which are the variety of information contained in the inventory records?You are in charge of inventory control of a highly successful product retailed by your firm. Weekly demand for this item varies, with an average of 200 units and a standard deviation of 16 units. It is purchased from a wholesaler at a cost of $12.50 per unit. You are using a continuous review system to control this inventory. The supply lead time is 4 weeks. Placingan order costs $50, and the inventory carrying rate per year is 20 percent of the item’s cost. Your firm operates 5 days per week, 50 weeks per year.a. What is the optimal ordering quantity for this item?b. How many units of the item should be maintained as safety stock for 99 percent protection against stockouts during an order cycle?c. If supply lead time can be reduced to 2 weeks, what is the percent reduction in the number of units maintained as safety stock for the same 99 percent stockout protection?d. If through appropriate sales promotions, the demand variability is reduced so that the standard deviation of weekly…
- 2. It is an inventory strategy a company employs to increase efficiency and decrease waste by receiving and producing goods as they are needed in the production process, thereby reducing inventory costs. a.Just In Time Inventory System B.min-Max Inventory System C.Pareto/80-20 inventory rule D.ABC inventory system E.None of the aboveDiscuss the Challenges & Best practices with respect to the inventory management. * Mention the references at the endWhat is inventory management, types of inventory and cost associated with inventory?? Please give in text reference if possible.??