Question 1

When it comes to catching and prosecuting shoplifters:

Accepted Answer

A) there is only a 1 in 100 chance a shoplifter will go before a judge. 
B) nearly ½ of all shoplifters are caught and prosecuted. 
C) women and juveniles are most frequently caught,nearly 98% of the time. 
D) the storeowner or employees must catch the shoplifter in the store to make the charges stick. 
A) there is only a 1 in 100 chance a shoplifter will go before a judge. 
B) nearly ½ of all shoplifters are caught and prosecuted. 
C) women and juveniles are most frequently caught,nearly 98% of the time. 
D) the storeowner or employees must catch the shoplifter in the store to make the charges stick.

Question 2

Small business owners should always prosecute and not worry about negative publicity or legal entanglements.

Accepted Answer

A) True 
 B)False

Question 3

In ABC method of inventory,A refers to:

Accepted Answer

A) items account for a high dollar usage volume. 
B) items account for a moderate dollar usage volume. 
C) items account for low dollar usage volume. 
D) None of the above 
A) items account for a high dollar usage volume. 
B) items account for a moderate dollar usage volume. 
C) items account for low dollar usage volume. 
D) None of the above

Question 4

A work environment that fosters honesty at every turn serves as an effective deterrent to employee theft.

Accepted Answer

A) True 
 B)False

Question 5

A firm's ________ expresses the number of times per year the business sells all of its inventory.

Accepted Answer

A) liquidity ratio 
B) inventory turnover ratio 
C) operating ratio 
D) quick ratio 
A) liquidity ratio 
B) inventory turnover ratio 
C) operating ratio 
D) quick ratio

Question 6

A ________ inventory control system is best suited for controlling merchandise classified as "B" items.

Accepted Answer

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

Question 7

Store owners and employees may apprehend and charge a shoplifter:

Accepted Answer

A) merely on the suspicion that they have stolen something. 
B) if the individual puts something in their bag or pocket without paying for it but hasn't left the store. 
C) only if the theft amounts to more than $25. 
D) only if they see the theft and can prove the merchandise belongs to the store and wasn't paid for. 
A) merely on the suspicion that they have stolen something. 
B) if the individual puts something in their bag or pocket without paying for it but hasn't left the store. 
C) only if the theft amounts to more than $25. 
D) only if they see the theft and can prove the merchandise belongs to the store and wasn't paid for.

Question 8

The ABC inventory control system causes managers to:

Accepted Answer

A) not keep a large safety stock on "A" items because it ties up too much cash. 
B) keep a large safety stock on "C" items because they generate the greatest revenue. 
C) keep a large safety stock on "A" items. 
D) keep small levels of safety stock for "C" items because they are of relatively little value. 
A) not keep a large safety stock on "A" items because it ties up too much cash. 
B) keep a large safety stock on "C" items because they generate the greatest revenue. 
C) keep a large safety stock on "A" items. 
D) keep small levels of safety stock for "C" items because they are of relatively little value.

Question 9

Information needed for a perpetual inventory system is an item's:

Accepted Answer

A) name. 
B) stock number. 
C) description. 
D) All of the above 
A) name. 
B) stock number. 
C) description. 
D) All of the above

Question 10

ABC inventory systems are designed to maintain a running count of the items in inventory.

Accepted Answer

A) True 
 B)False

Question 11

________ system enables business owners to track their inventories and to place orders with vendors quickly and with few errors by linking them to their vendors electronically.

Accepted Answer

A) Electronic Data Processing (EDP) 
B) Electronic Fund Processing (EFP) 
C) Electronic Data Interchange (EDI) 
D) Enterprise Resource Planning (ERP) 
A) Electronic Data Processing (EDP) 
B) Electronic Fund Processing (EFP) 
C) Electronic Data Interchange (EDI) 
D) Enterprise Resource Planning (ERP)

Question 12

The most effective business know that what is required is not simply the technology but the ________ with suppliers who are themselves technologically sophisticated enough to interact on a real time basis to deliver what is needed when it is needed.

Accepted Answer

A) credit terms 
B) Electronic Data Interchange 
C) critical strategic alliances 
D) None of the above 
A) credit terms 
B) Electronic Data Interchange 
C) critical strategic alliances 
D) None of the above

Question 13

A POS system can be set up for less than ________.

Accepted Answer

A) $1,000 
B) $10,000 
C) $5,000 
D) $15,000 
A) $1,000 
B) $10,000 
C) $5,000 
D) $15,000

Question 14

Annual dollar usage volume is simply the cost per unit of an item multiplied by the annual quantity used.

Accepted Answer

A) True 
 B)False

Question 15

Surprisingly,kleptomaniacs account for nearly 9% of all small business retail losses.

Accepted Answer

A) True 
 B)False

Question 16

A number of organizational factors encourage employee theft including:

Accepted Answer

A) being permitted to manage their own work and time schedules. 
B) working with one-of-a-kind items the employee could never afford to buy. 
C) having to elaborate of financial and inventory controls in place. 
D) a low probability of getting caught. 
A) being permitted to manage their own work and time schedules. 
B) working with one-of-a-kind items the employee could never afford to buy. 
C) having to elaborate of financial and inventory controls in place. 
D) a low probability of getting caught.

Question 17

Kleptomaniacs have a compulsive need to steal even though they have little,if any,need for the items they shoplift.Kleptomaniacs account for less than ________ percent of shoplifters.

Accepted Answer

A) 10 
B) 5 
C) 7 
D) 15 
A) 10 
B) 5 
C) 7 
D) 15

Question 18

When storage space or the type of item does not suit the two-bin system,the owner can use the ________.

Accepted Answer

A) sales system 
B) inventory system 
C) tag system 
D) weighted average system 
A) sales system 
B) inventory system 
C) tag system 
D) weighted average system

Question 19

In a two-bin system,the amount of stock in the second bin should equal the quantity ordered.

Accepted Answer

A) True 
 B)False

Question 20

A retail version of Just-In-Time inventory control is called:

Accepted Answer

A) EDI 
B) TQM. 
C) Efficient Consumer Response. 
D) JIT II. 
A) EDI 
B) TQM. 
C) Efficient Consumer Response. 
D) JIT II.

Exam 18: Managing Inventory

When it comes to catching and prosecuting shoplifters:

Small business owners should always prosecute and not worry about negative publicity or legal entanglements.

In ABC method of inventory,A refers to:

A work environment that fosters honesty at every turn serves as an effective deterrent to employee theft.

A firm's ________ expresses the number of times per year the business sells all of its inventory.

A ________ inventory control system is best suited for controlling merchandise classified as "B" items.

Store owners and employees may apprehend and charge a shoplifter:

The ABC inventory control system causes managers to:

Information needed for a perpetual inventory system is an item's:

ABC inventory systems are designed to maintain a running count of the items in inventory.

________ system enables business owners to track their inventories and to place orders with vendors quickly and with few errors by linking them to their vendors electronically.

The most effective business know that what is required is not simply the technology but the ________ with suppliers who are themselves technologically sophisticated enough to interact on a real time basis to deliver what is needed when it is needed.

A POS system can be set up for less than ________.

Annual dollar usage volume is simply the cost per unit of an item multiplied by the annual quantity used.

Surprisingly,kleptomaniacs account for nearly 9% of all small business retail losses.

A number of organizational factors encourage employee theft including:

Kleptomaniacs have a compulsive need to steal even though they have little,if any,need for the items they shoplift.Kleptomaniacs account for less than ________ percent of shoplifters.

When storage space or the type of item does not suit the two-bin system,the owner can use the ________.

In a two-bin system,the amount of stock in the second bin should equal the quantity ordered.

A retail version of Just-In-Time inventory control is called:

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Buying an Existing Business

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Creative Use of Advertising and Promotion

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Global Marketing Strategies

E-Commerce and Entrepreneurship

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