Question 1

Owner's equity are obligations or amounts owed by a company.

Accepted Answer

A) True 
 B)False

Question 2

Days of supply is calculated as:

Accepted Answer

A)  average daily usage/inventory on hand 
B)  inventory on hand/average daily usage 
C)  inventory on hand * average daily usage 
D)  none of the above 
A)  average daily usage/inventory on hand 
B)  inventory on hand/average daily usage 
C)  inventory on hand * average daily usage 
D)  none of the above

Question 3

A stockout can potentially be expensive because of:

Accepted Answer

A)  lost customers 
B)  lost sales 
C)  back- order costs 
D)  all of the above 
A)  lost customers 
B)  lost sales 
C)  back- order costs 
D)  all of the above

Question 4

Inventories allow operations with different rates of production to operate separately and more economically.

Accepted Answer

A) True 
 B)False

Question 5

Every time an order is placed at a work center, the time taken to set up is lost as a productive output time. This is ____________ cost.

Accepted Answer

A)  purchase order 
B)  setup and teardown 
C)  production control 
D)  lost capacity 
A)  purchase order 
B)  setup and teardown 
C)  production control 
D)  lost capacity

Question 6

Which of the following represents the accounting equation?

Accepted Answer

A)  Assets = liabilities * owner's equity 
B)  Assets + liabilities + owner's equity 
C)  Assets = liabilities - owner's equity 
D)  Assets = liabilities + owner's equity 
A)  Assets = liabilities * owner's equity 
B)  Assets + liabilities + owner's equity 
C)  Assets = liabilities - owner's equity 
D)  Assets = liabilities + owner's equity

Question 7

What costa are used for inventory management decisions?

Accepted Answer

The following costs are used f

Question 8

The___________ method assumes an average of all prices paid for the article.

Accepted Answer

A)  LIFO 
B)  FIFO 
C)  average cost 
D)  standard cost 
A)  LIFO 
B)  FIFO 
C)  average cost 
D)  standard cost

Question 9

If owners' equity is $1,000 and liabilities are $800, what are the assets?

Accepted Answer

Assets = liabilities

Question 10

A company has 9,000 units on hand and the annual usage is 48,000 units. There are 240 working days in the year. What is the days of supply?

Accepted Answer

Average daily savings = 48,000

Owner's equity are obligations or amounts owed by a company.

Days of supply is calculated as:

A stockout can potentially be expensive because of:

Inventories allow operations with different rates of production to operate separately and more economically.

Every time an order is placed at a work center, the time taken to set up is lost as a productive output time. This is ____________ cost.

Which of the following represents the accounting equation?

What costa are used for inventory management decisions?

The___________ method assumes an average of all prices paid for the article.

If owners' equity is $1,000 and liabilities are $800, what are the assets?

A company has 9,000 units on hand and the annual usage is 48,000 units. There are 240 working days in the year. What is the days of supply?

Introduction to Materials Management

Production Planning System

Master Scheduling

Material Requirements Planning

Capacity Management

Production Activity Control

Purchasing

Forecasting

Order Quantities

Independent Demand Ordering Systems

Physical Inventory and Warehouse Management

Physical Distribution

Products and Processes

Just-In-Time Manufacturing and Lean Production

Total Quality Management

Filters

Exam 9: Inventory Fundamentals

Owner's equity are obligations or amounts owed by a company.

Days of supply is calculated as:

A stockout can potentially be expensive because of:

Inventories allow operations with different rates of production to operate separately and more economically.

Every time an order is placed at a work center, the time taken to set up is lost as a productive output time. This is ____________ cost.

Which of the following represents the accounting equation?

What costa are used for inventory management decisions?

The___________ method assumes an average of all prices paid for the article.

If owners' equity is $1,000 and liabilities are $800, what are the assets?

A company has 9,000 units on hand and the annual usage is 48,000 units. There are 240 working days in the year. What is the days of supply?

Introduction to Materials Management

Production Planning System

Master Scheduling

Material Requirements Planning

Capacity Management

Production Activity Control

Purchasing

Forecasting

Order Quantities

Independent Demand Ordering Systems

Physical Inventory and Warehouse Management

Physical Distribution

Products and Processes

Just-In-Time Manufacturing and Lean Production

Total Quality Management

Filters