Inventory Management Paper 12

1

The economic order quantity formula assumes that






2

Firms that maintain very low or no inventory levels






3

An example of a carrying cost is






4

Which of the following is a characteristic of just-in-time (JIT) inventory management systems?






5

To evaluate the efficiency of purchase transactions, management decides to calculate the economic order quantity for a sample of the company’s products. To calculate the economic order quantity, management would need data for all of the following except:






6

The amount of inventory that a company would tend to hold in stock would increase as the






7

An appropriate technique for planning and controlling manufacturing inventories, such as raw materials, components, and sub assemblies, whose demand depends on the level of production, is






8

Digit Co. uses the FIFO method of costing for its international subsidiary’s inventory and LIFO for its domestic inventory. Under these circumstances, the auditor’s report on Digit’s financial statements should express an






9

Which of the following assumptions is associated with the economic order quantity formula? The carrying cost per unit will vary with






10

The Stewart Co. uses the Economic Order Quantity (EOQ) model for inventory management. A decrease in which one of the following variables would increase the EOQ?






Result

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