- All Exams Instant Download
The amount of inventory available at the start of an accounting period is known as...?
The amount of inventory available at the start of an accounting period is known as...?A . Buffer stockB . Work-in-progressC . Opening stockD . Closing stockView AnswerAnswer: C Explanation: Opening stock is the starting amount of inventory that a business has at a fixed moment in time. This could be...
Which of the following best defines ‘exponential moving average’?
Which of the following best defines ‘exponential moving average’?A . A forecasting technique where the average is calculated by dividing the sum of the val-ues by the number of valuesB . A process by which the reorder of an item is triggered by the inventory level dropping to a predetermined...
Which of the following best describes the relationship between a service level and safety stock?
Which of the following best describes the relationship between a service level and safety stock? A. A safety stock is not always required to achieve a required service level B. A service level decreases in proportion to a decrease in safety stock C. When safety stock is zero the service...
An organisation always obtains negative cash flow regarding removal and disposal of assets. Is this statement true?
An organisation always obtains negative cash flow regarding removal and disposal of assets. Is this statement true?A . No, the organisation may recover the value of the assets by reselling itB . Yes, the organisation incurs high maintenance cost during the disposal processesC . Yes, some assets require enormous decommissioning...
What is the different between gross material requirements plan (gross MRP) and a net material requirements plan (net MRP)?
What is the different between gross material requirements plan (gross MRP) and a net material requirements plan (net MRP)?A . The gross requirement doesn't take taxes into account, whereas the net requirement includes the tax considerationsB . The gross MRP includes consideration of available inventory, whereas the net MRP does...
Which of the following should be considered when an organisation plans for disposing obsolescent and redundant stock? Select TWO that apply.
Which of the following should be considered when an organisation plans for disposing obsolescent and redundant stock? Select TWO that apply.A . Financial costsB . Economic order quantityC . ABC analysisD . Takt timeE . Environmental issuesView AnswerAnswer: A, E Explanation: If the planning and mitigation measures fail and redundant...
Assuming that all other factors are constant except one, the net present value of a capital expenditure increases when...?
Assuming that all other factors are constant except one, the net present value of a capital expenditure increases when...?A . The initial cost of a project increasesB . The discounted rate increasesC . Net cash flow during a time period increasesD . Cash outflow during a time period increasesView AnswerAnswer:...
Which of the following is essential to effective implementation of just-in-time?
Which of the following is essential to effective implementation of just-in-time?A . Regular machine changeoversB . Larger warehouse for larger amount of inventoryC . No need for smoothing productionD . Strong links between the suppliers and the buying organisationView AnswerAnswer: D Explanation: For JIT manufacturing to succeed, companies must have...
Variability of lead time
Variability of lead timeA . 1 and 3 onlyB . 1 and 2 onlyC . 2 and 4 onlyD . 3 and 4 onlyView AnswerAnswer: D Explanation: Safety stock is also known as buffer stock. As this name suggests, this type of stock provides some kind of 'buffer', which means...
Which acceptance test activity will be required to check whether the new software integrates well with current IT system?
A hospital is purchasing a new software product that will advise nurses when to give medications to hospitalised patients. This is a mobile application that will be used on tablets carried by the nurses. The software is being developed and tested by a company that specialises in mobile medical applications....
