Inventory Management Quiz

Another word for stock is:

• Inventory

• Revenue

• Expense

• Liability

Goods which are partially completed are called:

• Finished Goods

• Raw Materials

• Work-in-Progress

• Inventory

Orders from the stores department using a:

• Purchase Order

• Sales Invoice

• Delivery Note

• Goods requisition note

Orders goods from an external supplier using a:

• Sales Invoice

• Delivery Note

• Purchase Order

• Requisition Form

The calculation of inventory valuations is:

• Opening inventory of raw materials + purchases - issues = Closing inventory of raw materials

• Opening inventory of raw materials + issues - purchases = Closing inventory of raw materials

• Opening inventory of raw materials - purchases + issues = Closing inventory of raw materials

• Opening inventory of raw materials - issues + purchases = Closing inventory of raw materials

Issues of inventory are valued at the oldest purchase prices. This method is known as:

• FIFO

• LIFO

• AVCO

Issues of inventory are valued at the weighted average cost of purchases. This method is known as:

• FIFO

• LIFO

• AVCO

Inventory balance is valued at the oldest purchase costs. This method is known as:

• FIFO

• LIFO

• AVCO

Which method of inventory valuation can only be used internally?

• FIFO

• LIFO

• AVCO

This is the extra amount of inventory that is held as a contingency (a reserve) in case things do not go according to plan. This is known as:

• Buffer stock

• Lead time

• Re-order level

• Re-order quantity