Exam 16: Assets: Inventory and Operations Management

The _____ is the total cost of substituting an asset with an essentially identical asset.

An arm's length transaction is a business deal where the parties have a prior relation or affiliation,but where the business is conducted as if they were unrelated.

Which of the following is one of the disadvantages of the return on investment (ROI)analysis?

A just-in-time (JIT)inventory system attempts to reduce inventory levels to the absolute minimum by:

Discuss the periodic and perpetual inventory approaches to maintaining inventory records.

Small businesses use the periodic inventory method because it:

Potential buyers and investors are most interested in the _____ value of a business's assets.

What will be the average profit for four years if Jack decides to invest in the HY-200 saw?

The sum of all costs of capital assets,including acquisition,ownership,operation,and disposal is called _____.

Which of the following is the largest current asset that most manufacturing,wholesale,and retail firms generally have?

The price at which goods and services are bought and sold between willing sellers and buyers in an arm's-length transaction is called a _____.

A lease in which at the end of the lease period the asset becomes the property of the lessee,possibly with an additional payment is called a(n)_____ lease.

Discuss the just-in-time inventory system.

The primary disadvantage of the payback period is that:

A(n)_____ is a closed receptacle for money,the keys to which are not available to those who physically handle the receptacle.

Discuss the four accounting methods to value capital assets.

_____ are assets that are expected to provide economic benefits for periods of time greater than one year.

A _____ is the process of physically counting business assets on a set schedule.

One of the policies for managing customer credit requires business owners to maintain constant "aging" of accounts to quickly identify customers who become delinquent.

The cost of ordering inventory is far greater than the cost of owning and holding inventory.