BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The use of paper records from sales transactions to enter data into the system
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The past amounts from each period added up and divided by the number of periods
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When a leader gives little to no direction to team members, but provides support
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An automated system which keeps track of figures so it does not have to be done manually
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Detailed explanation-1: -Average inventory is a calculation of inventory items averaged over two or more accounting periods. To calculate the average inventory over a year, add the inventory counts at the end of each month and then divide that by the number of months.
Detailed explanation-2: -The average inventory formula is: Average inventory = (Beginning inventory + Ending inventory) / 2. However there’s more to it than simply knowing the formula. Calculating average inventory is an important part of your overall inventory strategy.
Detailed explanation-3: -To get the average inventory from your EOQ, you divide your EOQ by 2.
Detailed explanation-4: -Sales divided by inventory levels equals inventory turnover. This ratio tells the analyst how many times the inventory sitting in stock has been moved or “turned over” during the average year.