Question 1

The ultimate goal for every business is to drive the inventory to ________.

Accepted Answer

A) zero 
B) below average 
C) average 
D) above average 
A) zero 
B) below average 
C) average 
D) above average A

Question 2

For changes in inventory management to be considered consistent with a "Just-In-Time" philosophy they must use both EDI and POS technology to manage the inventories.

Accepted Answer

A) True 
 B)False  False

Question 3

Explain the concept of the "Just-In-Time" inventory control technique.Under what circumstances would JIT be most appropriate?

Accepted Answer

The just-in-time system of inventory control sees excess inventory as a blanket that masks production problems and adds unnecessary costs to the production operation.Under a JIT philosophy,the level of inventory maintained is the measure of efficiency.Materials and parts should not build up as costly inventory.They should flow through the production process without stopping,arriving at the appropriate location just in time.

Question 4

Which of the following functions will the typical point-of-sale system perform?

Accepted Answer

A) Computing the annual dollar usage value of every item in the inventory 
B) Allowing the owner to check on the inventory level of any item listed in the database 
C) Reconciling actual inventory levels with inventory levels reported by the system 
D) Calculating the EOQ on any item in inventory 
A) Computing the annual dollar usage value of every item in the inventory 
B) Allowing the owner to check on the inventory level of any item listed in the database 
C) Reconciling actual inventory levels with inventory levels reported by the system 
D) Calculating the EOQ on any item in inventory

Question 5

Employee theft can be caused or encouraged by a number of factors including:

Accepted Answer

A) physical breakdowns of security. 
B) improper cash controls. 
C) organizational atmosphere. 
D) All of these 
A) physical breakdowns of security. 
B) improper cash controls. 
C) organizational atmosphere. 
D) All of these

Question 6

Perpetual inventory systems keep a continuous tally of each item added to or subtracted from the company's stock of merchandise.

Accepted Answer

A) True 
 B)False

Question 7

In an ABC system,A-items are those that account for a low dollar usage volume.

Accepted Answer

A) True 
 B)False

Question 8

98% of the time,shoplifters are successful in their thefts.

Accepted Answer

A) True 
 B)False

Question 9

The two-bin system and the tag system of inventory control are best suited for items classified as ________ in ABC analysis.

Accepted Answer

A) "A" items 
B) perishable items 
C) "C" items 
D) "B" items 
A) "A" items 
B) perishable items 
C) "C" items 
D) "B" items

Question 10

The key measure of manufacturing efficiency is the level of inventory maintained;the higher level of inventory,the more efficient the production system.

Accepted Answer

A) True 
 B)False

Question 11

Generally,training employees is more expensive than the losses to shoplifting but if employees are trained shoplifters will eventually leave your store alone.

Accepted Answer

A) True 
 B)False

Question 12

Items classified as "A" in ABC analysis should be controlled by a(n)________ inventory system.

Accepted Answer

A) periodic 
B) perpetual 
C) visual 
D) ABC 
A) periodic 
B) perpetual 
C) visual 
D) ABC

Question 13

Working capital can then be more effectively invested which will result in lower inventory turnover,higher cost and higher profits.

Accepted Answer

A) True 
 B)False

Question 14

A visual inventory system works best in firms where:

Accepted Answer

A) daily sales are slow. 
B) the variety of merchandise is very limited. 
C) the store is small. 
D) All of the above 
A) daily sales are slow. 
B) the variety of merchandise is very limited. 
C) the store is small. 
D) All of the above

Question 15

How can a small business owner prevent employee theft?

Accepted Answer

The owner sets the organizational tone f

Question 16

Because they keep continuous track on each item added to or taken from inventory,perpetual inventory control systems eliminate the need for a physical inventory count.

Accepted Answer

A) True 
 B)False

Question 17

According to your authors:

Accepted Answer

A) JIT involves the consolidation of manufacturing processes. 
B) almost any change leading to more efficient inventory use can be considered a part of JIT. 
C) only large companies with long manufacturing runs can benefit from the implementation of JIT. 
D) manufacturing runs need to be large to justify set-up costs in a JIT environment. 
A) JIT involves the consolidation of manufacturing processes. 
B) almost any change leading to more efficient inventory use can be considered a part of JIT. 
C) only large companies with long manufacturing runs can benefit from the implementation of JIT. 
D) manufacturing runs need to be large to justify set-up costs in a JIT environment.

Question 18

________ is simply the cost per unit of an item multiplied by the annual quantity used.For instance,the owner of a stereo shop may find that she sold 190 pairs of a popular brand of speaker during the previous year.

Accepted Answer

A) Daily dollar usage volume 
B) Quarterly dollar usage volume 
C) Annual dollar usage volume 
D) None of the above 
A) Daily dollar usage volume 
B) Quarterly dollar usage volume 
C) Annual dollar usage volume 
D) None of the above

Question 19

To make shoplifting charges stick,two of the things the owner/employee needs to be able to do is to identify the merchandise as belonging to the store and that it was not paid for.

Accepted Answer

A) True 
 B)False

Question 20

Nearly half of all shoplifters are:

Accepted Answer

A) professionals. 
B) impulse shoplifters. 
C) juveniles. 
D) None of these 
A) professionals. 
B) impulse shoplifters. 
C) juveniles. 
D) None of these

Exam 18: Managing Inventory

The ultimate goal for every business is to drive the inventory to ________.

For changes in inventory management to be considered consistent with a "Just-In-Time" philosophy they must use both EDI and POS technology to manage the inventories.

Explain the concept of the "Just-In-Time" inventory control technique.Under what circumstances would JIT be most appropriate?

Which of the following functions will the typical point-of-sale system perform?

Employee theft can be caused or encouraged by a number of factors including:

Perpetual inventory systems keep a continuous tally of each item added to or subtracted from the company's stock of merchandise.

In an ABC system,A-items are those that account for a low dollar usage volume.

98% of the time,shoplifters are successful in their thefts.

The two-bin system and the tag system of inventory control are best suited for items classified as ________ in ABC analysis.

The key measure of manufacturing efficiency is the level of inventory maintained;the higher level of inventory,the more efficient the production system.

Generally,training employees is more expensive than the losses to shoplifting but if employees are trained shoplifters will eventually leave your store alone.

Items classified as "A" in ABC analysis should be controlled by a(n)________ inventory system.

Working capital can then be more effectively invested which will result in lower inventory turnover,higher cost and higher profits.

A visual inventory system works best in firms where:

How can a small business owner prevent employee theft?

Because they keep continuous track on each item added to or taken from inventory,perpetual inventory control systems eliminate the need for a physical inventory count.

According to your authors:

________ is simply the cost per unit of an item multiplied by the annual quantity used.For instance,the owner of a stereo shop may find that she sold 190 pairs of a popular brand of speaker during the previous year.

To make shoplifting charges stick,two of the things the owner/employee needs to be able to do is to identify the merchandise as belonging to the store and that it was not paid for.

Nearly half of all shoplifters are:

Entrepreneurs: the Driving Force Behind Small Business

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Creating a Solid Financial Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

Filters