BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is NOT a factor to be considered when managing inventory?
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Lead time
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stock needs
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carrying costs
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sales commissions
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Explanation:
Detailed explanation-1: -Change in sales during the year is not a part of the inventory.
Detailed explanation-2: -Which of the following is not classified as inventory in the financial statements?(a)Finished goods(b)Work-in-process(c)Stores and spares(d)Advance payments made to suppliers for raw materials[Hints:(d) Advance payment made to suppliers for materials is not classified as inventory.
Detailed explanation-3: -Machines come under the asset category, hence CNC Milling Machine is an asset not inventory.
There is 1 question to complete.