COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Improves cash flow
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Keeps your inventory organized and accounted for
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Helps save on storage costs
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All of the above
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Detailed explanation-1: -The four types of inventory management are just-in-time management (JIT), materials requirement planning (MRP), economic order quantity (EOQ), and days sales of inventory (DSI). Each inventory management style works better for different businesses, and there are pros and cons to each type.
Detailed explanation-2: -Inventory management helps companies identify which and how much stock to order at what time. It tracks inventory from purchase to the sale of goods. The practice identifies and responds to trends to ensure there’s always enough stock to fulfill customer orders and proper warning of a shortage.
Detailed explanation-3: -There are four main types of inventory: raw materials/components, WIP, finished goods and MRO.
Detailed explanation-4: -club we have designed Multiple-Choice Questions (MCQs) on Inventory Management that covers economic order quantity, reorder point, reorder level, reorder quantity, min max inventory with definition/calculation/formula/examples. Our MCQs are helpful for accountancy students and competitive exams.