I think I'll manage
Directly related to holding inventory, for example, handling costs.
carrying costs
The form a buyer sends to a vendor to officially place an order is a(n) ____.
purchase order
Which of the following costs is not considered a carrying cost for inventory?
A. capital costs
B. inventory insurance costs
C. distribution costs
D. storage costs
distribution costs
The standard transfer of electronic data for business transactions between organizations, including orders, confirmations, and invoices, is ___.
EDI
Formal written proposal that lists all the goods and services to be provided, their corresponding prices, and the timeline for delivery.
bid
Which of the following is not a factor to be considered when managing inventory?
A. lead time
B. stock needs
C. carrying costs
D. sales commissions
sales commissions
The total time it takes from placing an order until it is received is known as ____.
lead time
How often should a physical inventory be conducted?
once or twice a year
The type of inventory-control system that is accomplished by eyeballing or using a bin ticket is ____.
unit-control system
The series of steps a purchasing agent or buyer takes to buy goods and services for a business is called the ______________________________.
purchasing process
Number of times inventory has been sold during a specified time period.
turnover rate
The main purpose of establishing a reorder point is to ____.
avoid a stockout situation
An actual count of all items in inventory at a specific time is a(n) ______________________________ inventory.
Physical
Which type of inventory-control system tracks sales by removing and saving price tags when products are sold?
manual-tag system
The series of steps a buyer takes to obtain the best price for a purchase is the ______________________________ process.
bidding
Discussion of a potential compromise.
negotiation
Which of the following is not a common cause of inventory shrinkage?
A. unexpectedly high sales
B. product breakage
C. data input errors
D. theft
unexpectedly high sales
The 80/20 inventory rule states that ____.
80 percent of sales comes from 20 percent of inventory
An inventory-control system that uses computer chips attached to inventory items to track inventory is ____.
RFID system
A vendor bill requesting payment for goods shipped or services provided is a(n) ______________________________.
invoice
Declaration of which party (buyer or shipper) has liability for the shipment if damages are incurred and at what point ownership of the goods change hands.
free on board
People who purchase goods for the sole purpose of reselling them to customers.
buyer
Additional stock kept above the minimum amount required to meet forecasted sales.
buffer stock
Which of the following statements about point-of-sale software is not true?
It requires all products to be reordered at the same time.
What is the difference between FOB shipping point and FOB destination point?
- FOB shipping point means that the buyer is responsible if damages are incurred during shipping, and the buyer pays for shipping.
-FOB destination point means that the seller is responsible until the shipment reaches the buyer, and the seller pays the shipping.