Exam 16: Assets: Inventory and Operations Management

If a business offers its assets as collateral,lenders are most interested in the _____ value.

Which of the following is not generally considered to be very useful for any purpose other than accounting and income taxes?

_____ refers to the process of deciding among various investment opportunities to create a specific spending plan.

Planning,organizing,and staffing are primarily the responsibility of operations management.

The primary disadvantage of leasing is that:

Economic order quantity (EOQ)is also called reorder point.

A lease is simply a rental agreement that specifies a minimum period of time for which one must make rental payments.

Pledging receivables will get an owner about one-half of the amount that can be collected,whereas,factoring can immediately get an owner _____ percent of the amount due.

Operations management is primarily concerned with:

A(n)_____ is the amount of inventory that results in the minimum cost,considering the cost of lost sales resulting from running out of stock,the number of units sold per day,and the number of days required to receive inventory.

Describe techniques to manage and improve the operations of a business.

Which of the following is a primary advantage of replacement value?

_____ is the determination of the amount of assets held by the firm for sale or production.

A long-term rental in which ownership of the asset never passes to the person paying for the lease is called a(n)_____ lease.

_____ refers to money that is owed to a business by its customers who purchased a product on credit.

Which of the following is the cost incurred in financing,insuring,taxing,or tracking an asset?

A(n)_____ is an amount of inventory carried to ensure that a business will not run out of inventory because of fluctuating levels of sales.

The total cost of keeping inventory is the sum of the cost to buy the inventory,the cost to store,protect,and maintain inventory,and the cost of making an order to purchase inventory.

The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset is referred to as the _____.

An ideal situation is where a business receives new inventory just as the last unit of the previous order is sold.However,this rarely occurs because the: