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1 section Inventory Terminology Flashcards | StudBud
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1 section Inventory Terminology
1 section Inventory Terminology
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1
What happens when the transfer of ownership is exchanged for money?
a transaction
an investment
an order
a sale
2
What is the best reorder point?
order quantity
safety stock
maximum
minimum
3
What is learned from a record of a parts past usage?
days supply
forecast
history
ROI
4
What type of cost is associated with a backorder?
pilferage
expense
loss
damage
5
What type inventory management system ensures parts are delivered as they are required?
LIFO
WIP
FIFO
JIT
6
What type of order bypasses the seller and is shipped to the customer?
stock
booking
direct
special
7
What happens when revenues are equal to expenses?
breakeven
profit
loss
gross profit
8
What allows a parts manager to analyze demand for a new part?
computer system
non stock test
BSL
past performance
9
How is a a part classified when it is no longer active in the data management system?
obsolete
return
offset
seasonal
10
What category represents fast moving items in the ABC Classification ranking system?
A
C
B
D
11
What computer controlled system is used by parts technicians to assist inventory management?
RFQ
LIFO
DMS
FIFO
12
What is the highest stocking level for an individual part?
matrix
maximum
best reorder point
master file
13
What is a critical component that is stocked without a sales history?
asset
capital spare
complete
raw material
14
What type of promise is made to guarantee the replacement of defective products?
warranty
insurance
return
quality assurance
15
What is another way to refer to the "80/20" rule?
Operational Plan
Pareto Principle
Penetration Pricing
Payback Period
16
Who has the authority to act on behalf of a business?
agent
manager
boss
shipper
17
Which parts sell in large amounts on a consistent basis?
regular stocked
profitable parts
fast movers
fixed assets
18
What extra charge may be applied when processing returns?
interest
fees
core
handling
19
What business strategy is used to protect assets against premature loss?
asset management
human resource management
purchasing policies
insurance
20
What does an owner put into a business?
liabilities
assets
equity
energy
21
What is the status of a part ordered but not yet received?
replenishment order
outstanding order
non-stock
on order
22
When will a replenishment order be generated?
demand
requisition
reorder point
purchase order issued
23
When does raw material inventory become work in process inventory?
when ordered
when stored
when issued
when sold
24
What is the goal of keeping an inventory?
six rights
employment
liquidation
asset management
25
What is used to designate the storage location of a SKU?
filing system
organizational strategy
quarantine
bin location
26
How is the actual on-hand quantity of a part verified?
piece ranking report
posting
adjustments
physical count
27
How is inventory described when there is a large quantity of one item stocked on the shelf?
depth
best stocking level
days supply
breadth
28
What is a product considered when demand is sufficient to justify that product?
phase in
obsolete
active
phase out
29
Where are the transactions between buyers and sellers documented?
emails
purchase orders
invoices
packing slips
30
How much of a product is immediately available from inventory?
minimum
overage
on hand
line item
31
What is another term used to describe a supplier?
vendor
source
supplier
customer
32
What must happen before a parts technician will attempt to make a sale?
purchase order
negotiations
item lookup
customer demand
33
What is the largest investment in a parts department?
people
inventory
resources
accounts receivable
34
What type of system requires little to no manual input to perform a prescribed task?
automated
hydraulic
manual
electronic
35
What happens when a product is required in excess of reasonable expectations?
abnormal demand
increased activity
seasonal fluctuations
accelerated depreciation
36
What type of asset is "goodwill"?
indirect
intangible
tangible
direct
37
What type of inventory is kept to protect against unforeseen changes?
maximum
forecast
safety stock
pipeline
38
What items are tracked by the inventory control system?
controlled
consumables
profitable
bulk
39
What type of item is not ordered for inventory?
return
booking
core
non-stock
40
What cost reduction incentive is given in effort to stimulate sales?
disbursement
discount
appreciation
merchandising
41
What kind of inventory is a consumable?
MRO
WIP
raw
retail
42
What ratio is used to compare dollar cost of sales to dollar cost of inventory?
working inventory value
turnover rate
trend analysis
value analysis
43
What is a cost of not carrying enough inventory?
job cuts
customer dissatisfaction
lost sales
all of these
44
How are on hand quantities matched with computer records?
ranking reports
stocking level
reconcile
sales history
