Entrepreneurship Chapter 15

Question 1

The act of holding and handling goods in a warehouse

Accepted Answer

Warehousing

Question 2

An amount deducted from the selling price for payment within a specified time period

Accepted Answer

Cash Discount

Question 3

The cost associated with giving up the use of money tied up in inventory

Accepted Answer

Opportunity Cost

Question 4

Which is a way to keep track of inventory

Accepted Answer

Perpetual Inventory System

Question 5

When choosing the right vendor, what factor needs to be considered

Accepted Answer

All of the above

Question 6

n/30 means

Accepted Answer

Pay full amount within 30 days

Question 7

Which is not a purchase discount

Accepted Answer

Sale Discount

Question 8

A form of guaranteed payment

Accepted Answer

Secured Funds

Question 9

The cost associated with renting or buying the space needed to store the inventory

Accepted Answer

Storage Cost

Question 10

The buying of all the materials needed by an organization

Accepted Answer

Purchasing

Question 11

Which are cost that go into inventory

Accepted Answer

Opportunity, Shrinkage, Insurance

Question 12

The gap in time between placing an order and receiving delivery

Accepted Answer

Lead time

Question 13

As inventory is sold, it is subtracted from the inventory list

Accepted Answer

Perpetual Inventory System

Question 14

An itemized statement of money owed for goods shipped or services rendered

Accepted Answer

Invoice

Question 15

A target inventory of what you think you will need to keep in stock

Accepted Answer

Model Inventory

Question 16

Which is not a type of dating

Accepted Answer

Post-Marked

Question 17

A cushion of products or materials

Accepted Answer

Safety Stock

Question 18

2/10

Accepted Answer

2% Discount if paid within 10 days

Question 19

A discount that a vendor gives to a buyer who places a large order

Accepted Answer

Quantity Discount

Question 20

A discount from the list price of an item by a manufacturer to a merchant

Accepted Answer

Trade Discount

Question 21

For nonperiodic reordering, which of the following should we ask ourselves

Accepted Answer

All of the above

Question 22

Businesses that sell you inventory

Accepted Answer

Vendors

Question 23

The cost of interest you pay to borrow money to purchase inventory

Accepted Answer

Financial Cost

Question 24

How quickly the inventory will be used in a given period of time

Accepted Answer

Usage Rate

Question 25

Looking at how much inventory you have and compare with what is on hand

Accepted Answer

Visual Inventory System

Entrepreneurship Chapter 15

Questions 25

Entrepreneurship Chapter 15

Questions 25