Exam 20: Inventory Management, Just-In-Time, and Simplified Costing Methods

arrow
  • Select Tags
search iconSearch Question
flashcardsStudy Flashcards
  • Select Tags

One DISADVANTAGE of an enterprise resource planning (ERP)system is:

(Multiple Choice)
4.7/5
(33)

Retailers generally have a high percentage of net income to revenues.

(True/False)
4.7/5
(36)

Video Images is a distributor of DVDs. Quick-Disk Mart is a local retail outlet which sells blank and recorded DVDs. Quick-Disk Mart purchases tapes from Video Images at $3.00 per DVD. DVDs are shipped in packages of 20. Video Images pays all incoming freight, and Quick-Disk Mart does not inspect the DVDs due to Video Images reputation for high quality. Annual demand is 104,000 DVDs at a rate of 4,000 DVDs per week. Quick-Disk Mart earns 20% on its cash investments. The purchase-order lead time is two weeks. The following cost data are available: Video Images is a distributor of DVDs. Quick-Disk Mart is a local retail outlet which sells blank and recorded DVDs. Quick-Disk Mart purchases tapes from Video Images at $3.00 per DVD. DVDs are shipped in packages of 20. Video Images pays all incoming freight, and Quick-Disk Mart does not inspect the DVDs due to Video Images reputation for high quality. Annual demand is 104,000 DVDs at a rate of 4,000 DVDs per week. Quick-Disk Mart earns 20% on its cash investments. The purchase-order lead time is two weeks. The following cost data are available:   What is the required annual return on investment per package? What is the required annual return on investment per package?

(Multiple Choice)
4.8/5
(33)

Answer the following questions using the information below: Short Grass Incorporated is a distributor of golf balls. Martin's Golf Supplies is a local retail outlet which sells golf balls. Martin's purchases the golf balls from Short Grass Incorporated at $0.75 per ball; the golf balls are shipped in cartons of 72. Short Grass Incorporated pays all incoming freight, and Martin's Golf Supplies does not inspect the balls due to Short Grass' reputation for high quality. Annual demand is 155,520 golf balls at a rate of 2,991 balls per week. Martin's Golf Supplies earns 12% on its cash investments. The purchase-order lead time is one week. The following cost data are available: Answer the following questions using the information below: Short Grass Incorporated is a distributor of golf balls. Martin's Golf Supplies is a local retail outlet which sells golf balls. Martin's purchases the golf balls from Short Grass Incorporated at $0.75 per ball; the golf balls are shipped in cartons of 72. Short Grass Incorporated pays all incoming freight, and Martin's Golf Supplies does not inspect the balls due to Short Grass' reputation for high quality. Annual demand is 155,520 golf balls at a rate of 2,991 balls per week. Martin's Golf Supplies earns 12% on its cash investments. The purchase-order lead time is one week. The following cost data are available:    -If Martin's makes an order (1/12 of annual demand)once per month, what are the relevant total costs? -If Martin's makes an order (1/12 of annual demand)once per month, what are the relevant total costs?

(Multiple Choice)
4.9/5
(35)

The annual relevant carrying costs of inventory consists of the sum of the:

(Multiple Choice)
4.8/5
(36)

Just-in-time purchasing describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations.

(True/False)
4.7/5
(36)

Lean accounting:

(Multiple Choice)
4.9/5
(38)

What is a supply chain, and what are the benefits of a supply chain analysis? Provide an example of these benefits.

(Essay)
4.7/5
(35)

Party Animals sells stuffed tigers. Products, Inc., manufactures many different stuffed animals. Party Animals orders 10,400 tigers per year, 200 per week, at $10 per tiger. The manufacturer covers all shipping costs. Party Animals earns 12% on its cash investments. The purchase-order lead time is 3 weeks. Party Animals sells 210 tigers per week. The following data are available (based on management's estimates): Party Animals sells stuffed tigers. Products, Inc., manufactures many different stuffed animals. Party Animals orders 10,400 tigers per year, 200 per week, at $10 per tiger. The manufacturer covers all shipping costs. Party Animals earns 12% on its cash investments. The purchase-order lead time is 3 weeks. Party Animals sells 210 tigers per week. The following data are available (based on management's estimates):   What is the economic order quantity using the estimated amounts? What is the economic order quantity using the estimated amounts?

(Multiple Choice)
4.8/5
(36)

To determine the Economic Order Quantity, the relevant ordering costs are maximized and the relevant carrying costs are minimized.

(True/False)
4.8/5
(45)

Shrinkage is measured by adding (a)the cost of the inventory recorded on the books in the absence of theft and other incidents just mentioned, and (b)the cost of inventory when physically counted.

(True/False)
4.8/5
(35)

Answer the following questions using the information below: Complete Digital Products manufactures digital cameras. For October, there were no beginning inventories of direct materials and no beginning or ending work in process. Conversion costs is the only indirect manufacturing cost category currently used. Journal entries are recorded when materials are purchased and when units are sold. Answer the following questions using the information below: Complete Digital Products manufactures digital cameras. For October, there were no beginning inventories of direct materials and no beginning or ending work in process. Conversion costs is the only indirect manufacturing cost category currently used. Journal entries are recorded when materials are purchased and when units are sold.    -Which of the following journal entries would be recorded when units are sold for the month?   -Which of the following journal entries would be recorded when units are sold for the month?

(Multiple Choice)
4.9/5
(30)

The time from when an order is received by manufacturing until it becomes a finished good is referred to as:

(Multiple Choice)
4.9/5
(39)

The management accountant aids in MRP by:

(Multiple Choice)
4.8/5
(39)

Obsolescence is an example of which cost category?

(Multiple Choice)
4.8/5
(38)

Shrinkage costs result from theft by outsiders, embezzlement by employees, misclassifications, and clerical errors.

(True/False)
4.9/5
(37)

Which of the following statements about the economic-order-quantity decision model is FALSE?

(Multiple Choice)
4.8/5
(35)

What are the major relevant costs in maintaining safety stock?

(Multiple Choice)
4.9/5
(43)

Answer the following questions using the information below: The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Answer the following questions using the information below: The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items:    Annual demand is 20,000 packages per year. The purchase price per package is $32. -What is the economic order quantity? Annual demand is 20,000 packages per year. The purchase price per package is $32. -What is the economic order quantity?

(Multiple Choice)
4.7/5
(25)

The costs of goods acquired from suppliers including incoming freight or transportation costs are:

(Multiple Choice)
4.8/5
(36)
Showing 101 - 120 of 125
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)