Question 1

Supplies for use in offices and shops should not be counted as inventory.

Accepted Answer

A) True 
 B)False

Question 2

Fully integrated production networks aid U.S. companies in global operations.

Accepted Answer

A) True 
 B)False

Question 3

High quality tends to result in lower production costs.

Accepted Answer

A) True 
 B)False

Question 4

Small businesses should develop a rating system to select, evaluate, and retain suppliers.

Accepted Answer

A) True 
 B)False

Question 5

_____ is the quantity to purchase that balances the cost of placing the order with the cost of carrying the inventory.

Accepted Answer

A)  Economic order quantity 
B)  Standing order 
C)  Stockout quantity 
D)  Purchase order 
A)  Economic order quantity 
B)  Standing order 
C)  Stockout quantity 
D)  Purchase order

Question 6

Using _____, materials are delivered to the user exactly at the time they are needed for production.

Accepted Answer

A)  supplier-based downsizing 
B)  just-in-time delivery 
C)  fully-integrated production networks 
D)  quality circles 
A)  supplier-based downsizing 
B)  just-in-time delivery 
C)  fully-integrated production networks 
D)  quality circles

Question 7

Which of the following is true of the 80-20 rule?

Accepted Answer

A)  A company should order 80 percent of its supplies from one supplier, and the remaining 20 percent from other suppliers. 
B)  80 percent of a company's income comes from 20 percent of its products. 
C)  The cost of raw materials should be about 80 percent of the cost of the finished product, and the cost of manufacturing should be about 20 percent of the cost of the finished product. 
D)  A company should schedule 80 percent of its production during 20 percent of the work week. 
A)  A company should order 80 percent of its supplies from one supplier, and the remaining 20 percent from other suppliers. 
B)  80 percent of a company's income comes from 20 percent of its products. 
C)  The cost of raw materials should be about 80 percent of the cost of the finished product, and the cost of manufacturing should be about 20 percent of the cost of the finished product. 
D)  A company should schedule 80 percent of its production during 20 percent of the work week.

Question 8

The responsibility for purchasing should be assigned to several people in the company to get the best quality items.

Accepted Answer

A) True 
 B)False

Question 9

The cost of materials and services needed to produce a product is usually one fourth of the revenue received for it.

Accepted Answer

A) True 
 B)False

Question 10

Stockouts reduce inventory excesses and increase profits.

Accepted Answer

A) True 
 B)False

Supplies for use in offices and shops should not be counted as inventory.

Fully integrated production networks aid U.S. companies in global operations.

High quality tends to result in lower production costs.

Small businesses should develop a rating system to select, evaluate, and retain suppliers.

_____ is the quantity to purchase that balances the cost of placing the order with the cost of carrying the inventory.

Using _____, materials are delivered to the user exactly at the time they are needed for production.

Which of the following is true of the 80-20 rule?

The responsibility for purchasing should be assigned to several people in the company to get the best quality items.

The cost of materials and services needed to produce a product is usually one fourth of the revenue received for it.

Stockouts reduce inventory excesses and increase profits.

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters

Exam 13: Purchasing, Inventory, and Quality Control

Supplies for use in offices and shops should not be counted as inventory.

Fully integrated production networks aid U.S. companies in global operations.

High quality tends to result in lower production costs.

Small businesses should develop a rating system to select, evaluate, and retain suppliers.

_____ is the quantity to purchase that balances the cost of placing the order with the cost of carrying the inventory.

Using _____, materials are delivered to the user exactly at the time they are needed for production.

Which of the following is true of the 80-20 rule?

The responsibility for purchasing should be assigned to several people in the company to get the best quality items.

The cost of materials and services needed to produce a product is usually one fourth of the revenue received for it.

Stockouts reduce inventory excesses and increase profits.

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters