stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
1 section Inventory Exam Review Flashcards | StudBud
Explore
/
1 section Inventory Exam Review
1 section Inventory Exam Review
40 terms
·
StudBud Administration
·
58 plays
#inventorymanagement
Flashcards
40 cards
F
Practice quiz
P
Host live
L
Questions
40
Answers
1
What does EOQ stand for?
economy quality order
economic quarterly orders
economy order quality
economic order quantity
2
What is another term used to describe a supplier?
supplier
vendor
customer
source
3
What is the point at which action will be taken to replenish a stocked item?
economic order quantity
lead time
safety stock
reorder point
4
What category represents fast moving items in the ABC Classification ranking system?
B
D
C
A
5
What is a critical assembly that is kept on hand but has no sales history?
work in process
capital spare
complete assy
inventory asset
6
What happens when the transfer of ownership is exchanged for money?
a sale
a transaction
an investment
an order
7
What is another way to refer to the "80/20" rule?
Pareto Principle
Penetration Pricing
Payback Period
Operational Plan
8
How is a a part classified when it is no longer active in the data management system?
seasonal
obsolete
return
offset
9
What does an owner put into a business?
equity
liabilities
assets
energy
10
Where are the transactions between buyers and sellers documented?
invoices
packing slips
emails
purchase orders
11
Where did just in time inventory management originate?
China
Germany
Great Britian
Japan
12
What extra charge may be applied when processing returns?
fees
core
handling
interest
13
How is inventory turnover rate calculated?
divide average inventory by annual purchase cost
divide annual purchases by average inventory
divide annual holding cost by average inventory
divide average inventory by annual holding costs
14
What is the status of a part ordered but not yet received?
non-stock order
outstanding order
replenishment order
pipeline inventory
15
What is a cost of not carrying enough inventory?
customer dissatisfaction
all of these
lost sales
job cuts
16
What type of system requires little to no manual input to perform a prescribed task?
electronic
manual
automated
hydraulic
17
When does raw material inventory become work in process inventory?
when sold
when issued
when stored
when ordered
18
How is the actual on-hand quantity of a part verified?
physical count
adjustments
piece ranking report
discrepancy report
19
What is used to designate the storage location of a SKU?
organizational strategy
bin location
filing system
quarantine
20
Which of the following is not a type of inventory?
raw materials
obsolete parts
work in process
MRO
21
What ratio is used to compare dollar cost of sales to dollar cost of inventory?
working inventory value
turnover rate
trend analysis
value analysis
22
When will a replenishment order be generated?
requisition
purchase order issued
reorder point
demand
23
What type inventory management system ensures parts are delivered as they are required?
LIFO
FIFO
WIP
JIT
24
What business strategy is used to protect assets against premature loss?
purchasing policies
asset management
insurance
human resource management
25
What type of inventory caters for fluctuations in demand & supply of goods?
anticipatory stock
cycle stock
buffer stock
pipeline stock
26
Who has the authority to act on behalf of a business?
boss
manager
shipper
agent
27
How are on hand quantities matched with computer records?
reconcile
sales history
ranking reports
stocking level
28
What kind of inventory is a consumable?
raw
WIP
retail
MRO
29
Stock rotation is part of what?
receiving process
manufacturing process
storing process
distribution process
30
Which of the following is not an inventory control method?
ad hoc
manual
visual
perpetual
31
How is inventory described when there is a large quantity of one item stocked on the shelf?
days supply
depth
best stocking level
breadth
32
What type of cost is associated with a backorder?
expense
damage
pilferage
loss
33
What is a product considered when demand is sufficient to justify that product?
obsolete
active
phase in
phase out
34
What type of item is not ordered for inventory?
core
non-stock
return
booking
35
What is the highest stocking level for an individual part?
maximum
matrix
best reorder point
master file
36
Which parts sell in large amounts on a consistent basis?
profitable parts
regular stocked
fixed assets
fast movers
37
What is learned from a record of a parts past usage?
history
forecast
delphi method
days supply
38
What happens when a product is required in excess of reasonable expectations?
abnormal demand
increased activity
seasonal fluctuations
accelerated depreciation
39
What happens when revenues are equal to expenses?
loss
gross profit
profit
breakeven
40
What is the largest investment in a parts department?
resources
people
inventory
accounts receivable
