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Which of the following is calculated by taking the selling price of the buyer's end product and subtracting the required profit?
Which of the following is calculated by taking the selling price of the buyer's end product and subtracting the required profit?A . Total costB . Target costC . Allowable costD . Should costView AnswerAnswer: B Explanation: Target cost is determined by subtracting the required profit margin from the selling price...
Compliance with which of the following will MOST likely reduce GHI's administrative burden of cargo inspections on materials imported from these sources?
GHI, Inc. is a U.S.-based company with an expanding product line. GHI widens its sourcing of components to global suppliers, including suppliers in countries which are not included in trading blocs or bilateral agreements with the United States. Compliance with which of the following will MOST likely reduce GHI's administrative...
In this situation, which of following is the BEST course of action for FGH to take?
FGH, Inc., a specialty construction company located in Italy, orders bulky customized sound equipment from a sole-source supplier in Asia. The equipment is to be installed in a new auditorium that FGH is constructing. Failure to complete the project in time for its scheduled opening will subject FGH to penalties....
What is the line count fill rate for the customer?
A distributor receives orders from a customer for the following parts: PO1801: 6 pcs of Item #XYZ-06 3 pcs of Item #XYZ-09 PO1802: 3 pcs of Item #XYZ-09 Item #XYZ-06 is currently out of stock. The shipping manager contacts the customer, who gives authorization to ship the available parts and...
What impact would meeting this goal have on profit?
A company would like to reduce its inventory. The firm's investment in inventory represents 12% of the company's $11 million total assets. The inventory carrying cost is 20%. An inventory reduction of $1 million is considered a feasible goal. What impact would meeting this goal have on profit?A . $240,000B...
In this situation, which of the following would be the BEST course of action to take?
At the beginning of each year, a large firm’s indirect procurement organization holds a brainstorming session. These sessions produce many great ideas and foster support among the procurement team. However, after a few years, support for the brainstorming sessions begins to diminish, and the projects discussed are pushed aside in...
Material accumulated for a well-defined future need is called
Material accumulated for a well-defined future need is calledA . buffer stockB . continuous inventoryC . anticipation inventoryD . safety stockView AnswerAnswer: C Explanation: Anticipation inventory refers to stock that is accumulated in advance of expected demand increases, such as seasonal spikes or promotions. This type of inventory helps companies...
A firm hires a new staff member in its warehousing department. As a FIRST step in the training of this employee, the warehouse manager should
A firm hires a new staff member in its warehousing department. As a FIRST step in the training of this employee, the warehouse manager shouldA . verify that the employee knows how to operate the warehouse equipment and tools correctlyB . demonstrate how to package products in the correct manner,...
Which of the following will be the BEST way for GHTs supply manager to demonstrate that supply management skills can obtain better value in shipping?
In an effort to cut expenses, GHI, Inc. moves responsibility for logistics to the supply management department. Some officers in the firm are skeptical that this move will be beneficial, since most shipping providers use published rates, and there will be little room for cost improvement. Which of the following...
How should this value be categorized in the asset management system?
A utility installation company conducts an annual review of its assets. Included with its equipment are several trenching machines that were purchased three years ago at a cost of $85,000 each. How should this value be categorized in the asset management system?A . EquityB . BookC . MarketD . HistoricView...
