COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
____ is a target inventory of what you think youwill need to keep in stock.
|
|
Vendors
|
|
|
Target inventory
|
|
|
Model inventory
|
|
|
Money
|
Explanation:
Detailed explanation-1: -Inventory can be defined as the total value of inventories in all stages of completion. Target inventory for the quarter ending January 31, 2023 was $17.117B, a 14.43% increase year-over-year. Target inventory for 2022 was $13.902B, a 30.5% increase from 2021.
Detailed explanation-2: -There are four main types of inventory: raw materials/components, WIP, finished goods and MRO.
Detailed explanation-3: -The primary reason for holding stock is to generate revenue through the sale of goods and services. To avoid the risk of a stock-out occurring and the subsequent potential towards lost sales, a company will typically hold some level of stock on hand. This is generally referred to as buffer or safety stock.
There is 1 question to complete.