L4M7 V2

Profit decreasesA . 2 and 4 onlyB . 1 and 3 onlyC . 2 and 3 onlyD . 1 and 4 onlyView AnswerAnswer: A Explanation: An inventory write-off is a process of removing from the general ledger any inventory that has no value. Using the direct write-off method, a business...

Which of the following is the correct statement about total ordering cost?A . Rise as the average stock level risesB . Equal the number of orders placed times the cost of placing an orderC . Rise as the order quantity risesD . Fall with the per period usage rateView AnswerAnswer:...

Among different types of costs associated with inventory, the costs of obtaining purchase approvals are...?A . Purchasing priceB . Costs of stockoutsC . Acquisition costsD . Holding costsView AnswerAnswer: C Explanation: Direct and indirect costs of holding inventory include the following: - Acquisition costs: preparing the requisition, supplier selection and...

A manager who is concerned about the environmental impact of packaging should do which of the following?A . Adopt international environmental packaging standardsB . Try to reduce the costs of packagingC . Purchase the packaging materials in bulkD . Not use the packaging materials at allView AnswerAnswer: A Explanation: In...

MRP software is a powerful tool for managing material requirements of manufacturing processes. To keep the software function well, an organisation must have appropriate input data. Which of the following are the inputs of MRP software? Select THREE that apply.A . Master production scheduleB . Bill of materialsC . Capacity...

To test the product durabilityA . 1 and 2 onlyB . 3 and 4 onlyC . 2 and 3 onlyD . 1 and 4 onlyView AnswerAnswer: C Explanation: It would be really convenient if we could just hand our products directly to the customers, but that’s not possible. Packaging needs...

Which of the following is the correct statement about total ordering cost?A . Rise as the average stock level risesB . Equal the number of orders placed times the cost of placing an orderC . Rise as the order quantity risesD . Fall with the per period usage rateView AnswerAnswer:...

Which of the following are main objectives of warehouse operations? Select TWO that apply.A . To ensure stock available when customers demandB . To create sufficient space for redundant stockC . To minimise stock loss and deteriorationD . To generate check digits for a product codeE . To maintain the...

Which of the following best describes what happens when order volumes from customers increase and multiply through the supply chain?A . Pareto curveB . Opitz systemC . Forrester effectD . Seasonal demandView AnswerAnswer: C Explanation: The bullwhip effect (or Forrester effect) is a distribution channel phenomenon in which forecasts yield...

In the Appendix A of a long-term supply contract of Bulk Drug Substance, both parties agree that "The reference price for Bulk Product at the specification, per gram, shall be US$10. The unit price for Bulk Product for a specific Purchase Order shall be computed by multiplying the above- specified...