Inventory Management Quiz

Which of the following items would NOT be considered inventory?

• Work-in-progress goods

• Manufacturing equipment

• Ready-to-sell goods

• Raw materials

A coffee shops counts its inventory every Monday to determine what to order for the following week. What is this system called?

• HIFO method

• Just-in-case method

• Periodic inventory

• LIFO method

Which method assumes assets (inventory) produced or acquired last are the ones used, sold or disposed of first?

• HIFO method

• Just-in-case method

• Periodic inventory

• LIFO method

A microchip supplier has a large shipment of microchips coming in which are the newer model than the ones already in stock. However, the supplier still has several older models on hand. What type of situation is this?

• Cross-docking situation

• HIFO situation

• FISH situation

• Perpetual inventory situation

Which inventory method involves a company keeping large amounts of inventory on hand in order to minimize the probability of selling out of a product?

• HIFO method

• Just-in-case method

• Periodic inventory

• LIFO method

If a company’s cost of goods sold is $57,993 and its average inventory is $15,348, what is its approximate inventory turnover percentage?

• 3.78 percent

• 2.65 percent

• 8.91 percent

• 4.27 percent

If a farmer grows vegetables and sells them directly to the consumer out of his home, which type of distribution channel does he use?

• Internet distribution

• Telemarketing

• Agents

• Direct marketing channel

A cosmetic company has individuals who sell the company’s products for commission, but they do not take ownership of the products at any time. Which type of distribution channel is being used in this situation?

• Internet distribution

• Telemarketing

• Agents

• Direct marketing channel

A company contacts a distributor and requests two languages be printed on the packaging of a product to fit the needs of buyers. This is an example of what function of the distribution channel?

• Matching

• Information

• Promotion

• Financing

Which type of inventory system as a higher chance of being inaccurate due to human error?

• Visual inventory system

• Perpetual manual inventory system

• Physical inventory system

• Perpetual computer-based inventory system