Inventory Management Quiz

What is a tangible?

• A physical item actually kept within the facility

• An item existing within the company's records

What is an intangible?

• A physical item actually kept within the facility

• An item existing within the company's records

What does inventory include?

• Company's raw materials

• Work in process

• Supplies used in operations

• All of them

Do inventory costs generally fall into ordering costs and shipping costs?

• True

• False

What do inventory costs generally fall into?

• Sales expenditures

• Work in process

• Line during the annual physical inventory

• Ordering costs and holding costs

What does 'JIT' stand for?

• Just-in-time

• Just-in-table

• Just-in-tangible

• Just-in-theft

What does holding costs include?

• Inventory (the opportunity cost of money)

• Storage costs such as rent

• The salaries of those purchasing the product

• A and B

What do ordering costs include?

• Shipping fees

• Unexpected transportation costs

• Inspection fees

• All of them

Why do you need inventory?

• It can help you keep track of all your supplies and determine accurate prices

• It can help you sell more products at better prices

What is the purpose of inventory?

• To know a fluctuation in demand and protect the price

• To protect the price of the product and sell more

• To know unreliability of supply: if an item is scarce, purchase orders and sell more

• To avoid buying without paying