Pop Quiz - Costing for material

Abnormal loss is an __________ loss that is not part of the standard production process.

Normal loss is often considered an inherent part of the __________ process.

The Economic Order Quantity (EOQ) is a formula used to find the optimal order __________ that minimizes total inventory costs.

In the EOQ formula, "D" represents the __________ demand for a product.

The EOQ model assumes that demand and that lead time is __________.

"H" in the EOQ formula represents the __________ cost per unit per year.

The Economic Order Quantity (EOQ) model helps determine the optimal order quantity that minimizes both __________ and holding costs.

Safety stock is used to provide a buffer against unexpected __________ or delays in the supply chain.

Lead time is the time it takes for a company to receive ordered goods from __________.

In an inventory control system, the reorder point is the inventory level at which a new __________ should be placed.