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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...
The ABC approach involves classifying inventory items by unit cost, with expensive items classified as ‘A' items and low cost items classified as ‘C' items. Is this statement true?
The ABC approach involves classifying inventory items by unit cost, with expensive items classified as ‘A' items and low cost items classified as ‘C' items. Is this statement true?A . Yes, 'A' items represent approximately 20% of total unit pricesB . Yes, 'C' items with the lowest unit prices are...
In the periodic review system, the order quantity is the same for each order. Is this statement true?
In the periodic review system, the order quantity is the same for each order. Is this statement true?A . No, the next order quantity must be larger than the previous oneB . No, the inventory position at each review point differs from each otherC . Yes, in periodic review system...
To test the product durability
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...
With D is the annual demand (units), S is cost per order, H is annual carrying cost per unit; the formula for Economic Order Quantity is....?
With D is the annual demand (units), S is cost per order, H is annual carrying cost per unit; the formula for Economic Order Quantity is....?A . √(D*S/2H)B . √(2D*S/H)C . √(D*S*H)D . √(D*S/3H)View AnswerAnswer: B Explanation: LO 2, AC 2.3
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...
Bulk loose coal that requires massive handling system should be stored in which area?
Bulk loose coal that requires massive handling system should be stored in which area?A . Chill hubB . StockyardC . Heating warehouseD . StoreView AnswerAnswer: B Explanation: Materials that will not easily deteriorate, are generally stored in open or fairly covered areas (stockyard). The materials are usually in bulk, like...
Which software system would help XYZ management team achieve the above objective?
XYZ Ltd has been adopting MRP system for years. The system helps the company improve efficiency greatly and generates huge cost-savings. However, MRP system is only limited to production process management and XYZ management team would like to have better insights into re-sources required across the organisation as a whole....
Which of the following is an important part of these systems?
To improve the security of a warehouse, alarm systems are commonly used. Which of the following is an important part of these systems?A . SensorsB . FencingC . CCTVD . LightingView AnswerAnswer: A Explanation: The most basic alarm consists of one or more sensors to detect intruders, and an alerting...
The following are examples of scheduled maintenance except...
The following are examples of scheduled maintenance except...A . Oil changes and regular servicingB . Overhauling of machineC . Repair signage damage from a recent stormD . Cleaning of tankView AnswerAnswer: C Explanation: Scheduled maintenance is any repair and upkeep work performed within a set timeframe. It details when given...
