BM2 Unit 1&2 Vocab

What is the primary purpose of a balance sheet?

• To show a company’s revenue for a period

• To capture a company’s financial condition at a specific moment

• To list only liabilities of a company

• To track employee performance

What does ROI stand for?

• Revenue of Investment

• Return on Input

• Return on Investment

• Revenue on Inventory

Which inventory strategy minimizes storage costs by receiving materials only as needed?

• Perpetual Inventory System

• Just-in-Time (JIT) Inventory

• Anticipation Inventory

• Buffer Inventory

Which of the following is an example of an intangible inventory?

• Office supplies

• Finished goods

• Patents

• Raw materials

True or False: Economic goods must be useful, scarce, and transferable.

Label the different parts of the supply chain

a

b

c

d

e

f

Consumers

Raw goods

Supplier

Distributor

Retailers

Production

What is the key difference between feedforward control and feedback control?

• Feedforward control happens after a process is completed, while feedback control occurs before.

• Feedforward control takes place before a process starts, while feedback control occurs afterward.

• Feedforward control is more effective than feedback control.

• Feedback control prevents errors before they happen.

Which of the following would be considered a prevention cost in quality control?

• Inspecting finished goods for defects

• Recalling defective products from customers

• Training employees on quality assurance

• Replacing a faulty product for a customer

A manufacturer that buys a supplier to control its raw materials is engaging in:

• Horizontal integration

• Vertical integration

• Reverse logistics

• Demand planning

Which type of control focuses on monitoring activities as they happen?

• Concurrent control

• Feedback control

• Feedforward control

• Preventative control