Question 1

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 2

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 con

Question 3

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

Question 4

The ________ inventory system is designed to maintain a running count of the items in inventory.

Accepted Answer

A) perpetual 
B) ABC 
C) visual control 
D) JIT 
A) perpetual 
B) ABC 
C) visual control 
D) JIT

Question 5

Carrying unsold inventory from one year to the next is senseless since it represents an investment earning no return and it ties up working capital that could be put to more productive uses.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Employers can reduce employee theft through:

Accepted Answer

A) careful screening of employees during hiring. 
B) only hiring relatives and the friends of current employees. 
C) the use of metal detectors and random strip searches of employees. 
D) searching employees' lockers and cars during work hours. 
A) careful screening of employees during hiring. 
B) only hiring relatives and the friends of current employees. 
C) the use of metal detectors and random strip searches of employees. 
D) searching employees' lockers and cars during work hours.

Question 8

Perpetual inventory systems:

Accepted Answer

A) are relatively inexpensive to use and therefore quite popular among discount retailers. 
B) are not particularly effective for keeping accurate track of large,expensive items. 
C) require consistent use of the inventory sheets in order to provide accurate results. 
D) are the simplest and quickest to use of all inventory systems. 
A) are relatively inexpensive to use and therefore quite popular among discount retailers. 
B) are not particularly effective for keeping accurate track of large,expensive items. 
C) require consistent use of the inventory sheets in order to provide accurate results. 
D) are the simplest and quickest to use of all inventory systems.

Question 9

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

Question 10

Impulse shoplifters steal on the spur of the moment when they succumb to temptation.

Accepted Answer

A) True 
 B)False

Question 11

Today a small growing company can improve their working relationships with both suppliers and customers through the application of ________.

Accepted Answer

A) electronic data processing (EDP) 
B) cloud-based systems 
C) electronic fund processing (EFP) 
D) customer relationship management (CRM) 
A) electronic data processing (EDP) 
B) cloud-based systems 
C) electronic fund processing (EFP) 
D) customer relationship management (CRM)

Question 12

The most common method of controlling inventory in a small business is the ________ system.

Accepted Answer

A) floor sample 
B) two-bin system 
C) partial 
D) visual 
A) floor sample 
B) two-bin system 
C) partial 
D) visual

Question 13

Both unreasonable rules and un-enforced rules are equally harmful to small business security.

Accepted Answer

A) True 
 B)False

Question 14

Doing daily inspections of the cash register tape to check for employee theft are of little value since the theft would have already taken place and it would be difficult to trace and prove at that point.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following would most likely use a perpetual inventory system?

Accepted Answer

A) A hardware store 
B) A department store 
C) A landscaping/greenhouse operation 
D) A retailer of large appliances 
A) A hardware store 
B) A department store 
C) A landscaping/greenhouse operation 
D) A retailer of large appliances

Question 16

If an owner or his/her relatives take the product home without properly logging it out,employees will perceive that it is okay and will be more likely to "steal" from the company in this way.

Accepted Answer

A) True 
 B)False

Question 17

The greatest criminal threat to small business is from professional crooks in the form of shoplifters,fraudulent insurance sales,and computer scams.

Accepted Answer

A) True 
 B)False

Question 18

The primary human elements on which successful JIT systems are built are:

Accepted Answer

A) mutual trust and teamwork & productivity. 
B) mutual trust and teamwork and empowerment. 
C) lower labor cost and productivity. 
D) high profit and lower labor cost. 
A) mutual trust and teamwork & productivity. 
B) mutual trust and teamwork and empowerment. 
C) lower labor cost and productivity. 
D) high profit and lower labor cost.

Question 19

Companies experience a number of benefits from JIT including:

Accepted Answer

A) better customer acceptance of their products and services. 
B) increased job satisfaction among employees. 
C) a reduction of inventory and handling costs. 
D) longer equipment life and lower maintenance costs. 
A) better customer acceptance of their products and services. 
B) increased job satisfaction among employees. 
C) a reduction of inventory and handling costs. 
D) longer equipment life and lower maintenance costs.

Question 20

JIT II differs from other production improvement methods in that:

Accepted Answer

A) it requires the close cooperation of companies and their suppliers. 
B) it uses teams. 
C) it empowers through extensive training of employees. 
D) it makes heavy use of computer technology. 
A) it requires the close cooperation of companies and their suppliers. 
B) it uses teams. 
C) it empowers through extensive training of employees. 
D) it makes heavy use of computer technology.

Exam 20: Managing Inventory

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.

Explain the concept of the "just-in-time" inventory control technique.Under what circumstances would JIT be most appropriate?

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.

The ________ inventory system is designed to maintain a running count of the items in inventory.

Carrying unsold inventory from one year to the next is senseless since it represents an investment earning no return and it ties up working capital that could be put to more productive uses.

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

Employers can reduce employee theft through:

Perpetual inventory systems:

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

Impulse shoplifters steal on the spur of the moment when they succumb to temptation.

Today a small growing company can improve their working relationships with both suppliers and customers through the application of ________.

The most common method of controlling inventory in a small business is the ________ system.

Both unreasonable rules and un-enforced rules are equally harmful to small business security.

Doing daily inspections of the cash register tape to check for employee theft are of little value since the theft would have already taken place and it would be difficult to trace and prove at that point.

Which of the following would most likely use a perpetual inventory system?

If an owner or his/her relatives take the product home without properly logging it out,employees will perceive that it is okay and will be more likely to "steal" from the company in this way.

The greatest criminal threat to small business is from professional crooks in the form of shoplifters,fraudulent insurance sales,and computer scams.

The primary human elements on which successful JIT systems are built are:

Companies experience a number of benefits from JIT including:

JIT II differs from other production improvement methods in that:

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

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

The Legal Environment: Business Law and Government Regulation

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