A mathematical formula used to calculate the optimal order quantity when ordering material.
What is Economic Order Quantity (EOQ)?
100
The purchase and receipt, storage, and requisition and consumption functions relate to these procedures.
What are Material Control Procedures?
100
A subsidiary ledger that contains an individual account for each type of material carried in stock.
What is a Material Ledger?
100
Fifo, Lifo, and Moving Average. (Again!)
What are three methods to track the cost flow of materials issued to the factory in a perpetual system?
200
Physical control and control over the investment in materials.
What are the two basic aspects of materials control?
200
The K in the EOQ formula represents this cost.
What is the annual carrying cost per unit
200
The form used to notify the puchasing agent that additional materials are needed.
What is a Purchase Requisition?
200
The account debited when material is purchased from a vendor.
What is Materials (or Raw Materials)?
200
A system whereby goods are produced in the hope that the demand for the goods will then be created.
What is a "Push Manufacturing System"?
300
The physical control that only allows authorized personnel to have access to material storage areas.
What is Limited Access?
300
The estimated minimum level of inventory necessary to protect against stockouts.
What is Safety Stock?
300
A form addressed to a specific vendor that details the particulars of a material order.
What is a Purchase Order?
300
The account debited when material is taken from the storeroom and moved to the factory area for use.
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What is Work In Process?
300
A system whereby demand creates the impetus to produce parts production and finished goods.
What is a " Pull Manufacturing System"?
400
The functions of purchasing, receiving, storage,use, and recording should be separated as part of this basic principle of internal control.
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What is Segregation of Duties?
400
The interest on funds to acquire inventory, insurance coverage of inventory, and property taxes on inventory are factors in determining this cost.
What is Carrying Cost?
400
Is prepared by authorized factory personnel and orders the withdrawal of materials from the storeroom.
What is a Material Requisition?
400
The account debited when any factory cost is incurred that does not involve Direct Material or Direct Labor.
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What is Factory Overhead?
400
A "lean production" system where needed materials are delivered to the factory immediately prior to their use in production.
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What is a "Just In Time" (JIT) system?
500
The factors of usage, lead time, and safety stock are in this calculation.
What is the Order Point?
500
The loss of revenues from a pending sale as well as a permanent loss of customers are two of the negative results from this type of occurence.
What are examples of the costs of stockouts?
500
The process of business to business electronic communications.
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What is Electronic Data Interchange (EDI)?
500
The circumstance and frequency that a physical inventory (counting the stuff) is taken.
What is at least annually regardless of the inventory method utilized?
500
Three circumstances arising from production where:
1) Material is lost as a natural part of the production process;
2) Goods with imperfections can't be economically corrected;
3) Imperfect goods that can be reworked and sold.