Question 1

Which of the following is a part of the "just-in-time" inventory control philosophy?

Accepted Answer

A) Job tasks should be highly specialized. 
B) Machinery must produce a large number of items to justify long set-up times and high costs. 
C) The lower the level of inventory a manufacturer maintains,the more efficient is the production system. 
D) Long production runs of standard items are ideal. 
A) Job tasks should be highly specialized. 
B) Machinery must produce a large number of items to justify long set-up times and high costs. 
C) The lower the level of inventory a manufacturer maintains,the more efficient is the production system. 
D) Long production runs of standard items are ideal.

Question 2

The 80/20 rule states that 80% of each sales dollar should be spent on purchases,and the remaining 20% should go towards covering costs and making a profit.

Accepted Answer

A) True 
 B)False

Question 3

Why do employees steal?

Accepted Answer

Employee theft accounts for the majority

Question 4

Research shows that the nature of the business contributes to its vulnerability to crime.

Accepted Answer

A) True 
 B)False

Question 5

In an ABC system,"A" items are those that account for a low dollar usage volume.

Accepted Answer

A) True 
 B)False

Question 6

How can a small business owner turn slow-moving inventory items into cash?

Accepted Answer

Managing inventory requires monitoring t

Question 7

When conducting a physical inventory,________ involves counting a number of items on a continuous basis.

Accepted Answer

A) semi cycle counting 
B) cycle counting 
C) perpetual inventory 
D) None of the above 
A) semi cycle counting 
B) cycle counting 
C) perpetual inventory 
D) None of the above

Question 8

Who are the people who shoplift and what can the small business owner do to deter shoplifting?

Accepted Answer

Shoplifting is the most common business

Question 9

Which of the following statement is correct?

Accepted Answer

A) Items in the A classification should be controlled under a perpetual inventory system with as much detail as necessary. 
B) Control of B items should rely more on periodic control systems and basic analytical tools such as EOQ and reorder point analysis. 
C) C items typically constitute a minor proportion of the small firm's inventory value and,as a result,require the least effort and expense to control. 
D) All of the above 
A) Items in the A classification should be controlled under a perpetual inventory system with as much detail as necessary. 
B) Control of B items should rely more on periodic control systems and basic analytical tools such as EOQ and reorder point analysis. 
C) C items typically constitute a minor proportion of the small firm's inventory value and,as a result,require the least effort and expense to control. 
D) All of the above

Question 10

Many incidents of employee theft go undetected,and only a small percentage of those employees who are caught stealing are prosecuted.

Accepted Answer

A) True 
 B)False

Question 11

Briefly explain each of the three primary inventory systems.

Accepted Answer

? Perpetual inventory systems are

Question 12

In general,a(n)________ inventory control system works best in firms in which daily sales are relatively consistent.

Accepted Answer

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

Question 13

A form of inventory management used in manufacturing that stresses a harmonious relationship with suppliers is:

Accepted Answer

A) CRM. 
B) TQM. 
C) efficient consumer response. 
D) JIT II. 
A) CRM. 
B) TQM. 
C) efficient consumer response. 
D) JIT II.

Question 14

To make shoplifting charges stick,two of the things the owner/employee needs to be able to do is to identify the merchandise as belonging to the store and that it was not paid for.

Accepted Answer

A) True 
 B)False

Question 15

Visual inventory control systems work best with firms that have strong variations in their sales.

Accepted Answer

A) True 
 B)False

Question 16

Computerized POS systems make it possible for entrepreneurs to use a basic ________ inventory system.

Accepted Answer

A) ABC 
B) perpetual 
C) visual 
D) virtual 
A) ABC 
B) perpetual 
C) visual 
D) virtual

Question 17

Combining ________ with a POS system gives a small business owner a state-of-the-art checkout system and further extends the abilities of the POS system in the information it provides the owner.

Accepted Answer

A) TQM 
B) an EDI system 
C) universal product code labels and scanners 
D) an ABC system 
A) TQM 
B) an EDI system 
C) universal product code labels and scanners 
D) an ABC system

Question 18

Most employee theft:

Accepted Answer

A) involves values in excess of $1,000. 
B) is expensive merchandise. 
C) is small amounts of cash. 
D) is the equivalent of nickel and dime items. 
A) involves values in excess of $1,000. 
B) is expensive merchandise. 
C) is small amounts of cash. 
D) is the equivalent of nickel and dime items.

Question 19

The purpose of ABC inventory analysis is:

Accepted Answer

A) to help retail stores control their inventories to prevent shoplifting and employee theft. 
B) to save time by only inventorying those items that produce the majority of a firm's sales. 
C) to focus inventory control efforts on items that account for the majority of sales. 
D) a system to facilitate the computerization of a firm's perpetual inventory system. 
A) to help retail stores control their inventories to prevent shoplifting and employee theft. 
B) to save time by only inventorying those items that produce the majority of a firm's sales. 
C) to focus inventory control efforts on items that account for the majority of sales. 
D) a system to facilitate the computerization of a firm's perpetual inventory system.

Question 20

JIT II in the retail and service industries is more commonly called efficient customer response.

Accepted Answer

A) True 
 B)False

Exam 20: Managing Inventory

Which of the following is a part of the "just-in-time" inventory control philosophy?

The 80/20 rule states that 80% of each sales dollar should be spent on purchases,and the remaining 20% should go towards covering costs and making a profit.

Why do employees steal?

Research shows that the nature of the business contributes to its vulnerability to crime.

In an ABC system,"A" items are those that account for a low dollar usage volume.

How can a small business owner turn slow-moving inventory items into cash?

When conducting a physical inventory,________ involves counting a number of items on a continuous basis.

Who are the people who shoplift and what can the small business owner do to deter shoplifting?

Which of the following statement is correct?

Many incidents of employee theft go undetected,and only a small percentage of those employees who are caught stealing are prosecuted.

Briefly explain each of the three primary inventory systems.

In general,a(n)________ inventory control system works best in firms in which daily sales are relatively consistent.

A form of inventory management used in manufacturing that stresses a harmonious relationship with suppliers is:

To make shoplifting charges stick,two of the things the owner/employee needs to be able to do is to identify the merchandise as belonging to the store and that it was not paid for.

Visual inventory control systems work best with firms that have strong variations in their sales.

Computerized POS systems make it possible for entrepreneurs to use a basic ________ inventory system.

Combining ________ with a POS system gives a small business owner a state-of-the-art checkout system and further extends the abilities of the POS system in the information it provides the owner.

Most employee theft:

The purpose of ABC inventory analysis is:

JIT II in the retail and service industries is more commonly called efficient customer response.

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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