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Inventory Management, Just in Time and Costing Methods – MCQs

31 questions. Click to practice.

Correct options are highlighted when revealed.

1.Given a purchase order lead time of 35 minutes and a sales rate of 400 units per minute, what is the reorder point?

2.Which category includes expenses related to creating purchase orders, generating delivery records for payment tracking, and inspecting items?

3.What is the term for purchasing goods or materials so that they arrive exactly when needed at the company's production site?

4.Given a required rate of return of 12% and a purchase cost of $35 per unit, what is the relevant opportunity cost of capital?

5.What is the name of the decision model used to determine the ideal amount of inventory to order?

6.Given that the economic order quantity (EOQ) for a year is 15,000 packages and the annual demand is 1,500 units, how many deliveries will be made in one year?

7.Which production approach involves manufacturing goods exclusively for finished inventory based on predicted demand forecasts?

8.Which of the following is an example of shrinkage costs?

9.Given that the opportunity cost of capital is $2,950 and the carrying cost of inventory is $6,700, what is the relevant incremental cost?

10.Which type of costs include expenses related to holding finished products, such as spoilage, obsolescence, and insurance?

11.What is the term for an accounting system's capability to track resource usage at each stage of the production process?

Inventory Management, Just in Time and Costing Methods – MCQs | PakQuizHub