Question 1

In ABC analysis,the dollar usage value of an item is determined by:

Accepted Answer

A) its price per unit times its shrinkage rate. 
B) a statistical application of the 80/20 rule. 
C) POS systems. 
D) its cost per unit and its sales volume. 
A) its price per unit times its shrinkage rate. 
B) a statistical application of the 80/20 rule. 
C) POS systems. 
D) its cost per unit and its sales volume.

Question 2

________ system(s)enable(s)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) Cloud-based systems 
D) Enterprise Resource Planning (ERP) 
A) Electronic Data Processing (EDP) 
B) Electronic Fund Processing (EFP) 
C) Cloud-based systems 
D) Enterprise Resource Planning (ERP)

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

What is a perpetual inventory control system? Explain its advantages and disadvantages.

Accepted Answer

Perpetual inventory control systems are

Question 6

Point of sale (POS)systems do not perform any of the functions of a traditional cash register but they do maintain an up-to-the minute inventory count.

Accepted Answer

A) True 
 B)False

Question 7

How can a small business owner prevent employee theft?

Accepted Answer

The owner sets the organizational tone f

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

Cloud-based systems enable 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) True 
 B)False

Question 11

In an ABC system of inventory control,________ is (are)the measure of the relative importance of an item in the company's inventory.

Accepted Answer

A) dollar usage value 
B) carrying costs 
C) set-up costs 
D) optimum inventory level 
A) dollar usage value 
B) carrying costs 
C) set-up costs 
D) optimum inventory level

Question 12

Because of their relatively inexpensive nature,perpetual inventory systems are used most frequently and successfully in controlling low-dollar,high-volume items.

Accepted Answer

A) True 
 B)False

Question 13

JIT systems need two significant human elements to be successful: mutual trust and teamwork,and:

Accepted Answer

A) an individual incentive/rewards program. 
B) staff training. 
C) a benefits program. 
D) empowerment. 
A) an individual incentive/rewards program. 
B) staff training. 
C) a benefits program. 
D) empowerment.

Question 14

The best way to deal with shoplifting is to take steps to prevent it rather than stress catching the shoplifter in the act.

Accepted Answer

A) True 
 B)False

Question 15

Juveniles account for approximately one-fifth of all shoplifters.

Accepted Answer

A) True 
 B)False

Question 16

What is JIT II? How does it differ from JIT? What is the importance of those differences?

Accepted Answer

JIT II techniques focus on creating a cl

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

The inventory turnover ratio is computed by:

Accepted Answer

A) dividing the firm's cost of goods sold by its average inventory. 
B) dividing average inventory by firm's cost of goods sold. 
C) dividing the firm's revenue by its average inventory. 
D) dividing all costs by its average inventory. 
A) dividing the firm's cost of goods sold by its average inventory. 
B) dividing average inventory by firm's cost of goods sold. 
C) dividing the firm's revenue by its average inventory. 
D) dividing all costs by its average inventory.

Question 19

The most effective businesses 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 20

For most retailers and wholesalers,the investment in ________ is the largest capital outlay next to payroll.

Accepted Answer

A) office equipment,computers,etc. 
B) vehicles,automobiles and trucks 
C) inventory 
D) taxes and licensing fees 
A) office equipment,computers,etc. 
B) vehicles,automobiles and trucks 
C) inventory 
D) taxes and licensing fees

Exam 20: Managing Inventory

In ABC analysis,the dollar usage value of an item is determined by:

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

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

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

What is a perpetual inventory control system? Explain its advantages and disadvantages.

Point of sale (POS)systems do not perform any of the functions of a traditional cash register but they do maintain an up-to-the minute inventory count.

How can a small business owner prevent employee theft?

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

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

Cloud-based systems enable business owners to track their inventories and to place orders with vendors quickly and with few errors by linking them to their vendors electronically.

In an ABC system of inventory control,________ is (are)the measure of the relative importance of an item in the company's inventory.

Because of their relatively inexpensive nature,perpetual inventory systems are used most frequently and successfully in controlling low-dollar,high-volume items.

JIT systems need two significant human elements to be successful: mutual trust and teamwork,and:

The best way to deal with shoplifting is to take steps to prevent it rather than stress catching the shoplifter in the act.

Juveniles account for approximately one-fifth of all shoplifters.

What is JIT II? How does it differ from JIT? What is the importance of those differences?

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.

The inventory turnover ratio is computed by:

The most effective businesses 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.

For most retailers and wholesalers,the investment in ________ is the largest capital outlay next to payroll.

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

Filters