Inventory Management, Just in Time and Costing Methods

1.When combining relevant ordering expenses with relevant holding expenses, what is the resulting calculation called?

2.To determine ____________, you multiply the purchase order lead time by the quantity of units sold within a given time period.

3.To determine ___________, the reorder point is divided by the quantity of units sold per time period.

applicable inventory holding costapplicable ordering expenseduration of a purchase order cycletotal count of purchase orders

4.In the manufacturing process, what is the term for the phase when accounting journal entries are recorded?

5.Which costing method involves skipping certain journal entries in the accounting process?

6.To determine ___________, the relevant incremental costs are combined with the appropriate opportunity cost of capital.

expenses related to purchase ordersapplicable costs for holding inventorynon-essential inventory holding expensespertinent costs associated with ordering

7.What do you obtain by multiplying the average inventory units by the yearly relevant carrying cost per unit?

Yearly irrelevant ordering expensesYearly relevant carrying expensesYearly relevant ordering expensesYearly irrelevant carrying expenses

8.Given an annual demand of 18,000 units, a relevant ordering cost of $150 per order, and an order size of 1,500 units, what is the total relevant ordering cost for the year?

$200$190$160$180

9.What term describes the organized movement of products, services, or information from the procurement of raw materials to the final delivery to customers?

10.To determine __________, the required rate of return is multiplied by the cost per unit of purchased inventory.

non-essential inventory holding expensesthe pertinent opportunity cost of capitalsignificant purchase order expensesimportant inventory holding charges

11.Which category includes expenses related to product defects, error prevention, and quality assessments?

12.Given an average inventory of 2,000 units and an annual carrying cost of $5 per unit, what is the total annual carrying cost?

$5,000$4,500$5,500$6,000

13.Which of the following represents a type of cost associated with purchasing?

14.Given an annual demand of 25,000 units, an ordering cost of $210 per order, and a holding cost of $25 per unit, what is the Economic Order Quantity (EOQ)?

678 units648 units658 units668 units

18.Given that the incremental costs amount to $5,000 and the opportunity cost of invested capital is $2,500, what is the total relevant inventory carrying cost?

$7,500$7,000$6,500$6,000

19.To determine ____________, the quantity of purchase orders per year is multiplied by the associated ordering cost for each order.

yearly non-essential ordering expensesyearly applicable holding expensesyearly applicable ordering expensesyearly non-essential holding expenses

20.Which costing approach focuses on the entire value stream to generate customer value instead of concentrating on separate departments or individual products?