COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The goal of inventory control procedures is to maximize profits with minimum inventory investment, without impacting customer satisfaction levels.
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True
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False
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Explanation:
Detailed explanation-1: -The goal of inventory control is for brands to keep only the necessary units on hand without spending too much money upfront or sacrificing customer satisfaction.
Detailed explanation-2: -Economic Order Quantity (EOQ) This model is used in inventory management by calculating the number of units a company should add to its inventory with each batch order to reduce the total costs of its inventory while assuming constant consumer demand.
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