INV 1705 QUIZ 7: Inventory and Other Assets Quiz

What is the primary goal of inventory management?

• To increase holding costs

• To eliminate all inventory

• To ensure the right quantity at the right time

• To complicate ordering

Which of the following is a type of inventory?

• Raw materials

• Finished goods

• Work-in-progress

• All of the above

An example of a non-inventory asset would be:

• Office furniture

• Raw materials

• Work-in-progress

• Finished goods

What is a stock-keeping unit (SKU)?

• A shipping container

• A warehouse

• A unique identifier for inventory

• A type of expense

Which document is most important for verifying receipt of inventory?

• Sales invoice

• Packing slip

• Purchase order

• Receiving report

Which of the following is a reason for conducting a physical inventory count?

• To update payroll

• To verify book records

• To promote staff

• To plan advertising

Obsolete inventory refers to:

• Inventory in transit

• Inventory in high demand

• Unsellable or outdated inventory

• Recently received inventory

Which department typically manages inventory levels?

• Human resources

• Finance

• Supply chain or operations

• Marketing