BUISENESS MANAGEMENT
MERCHANDISING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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businesses purchasing finished goods or component parts.
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items in inventory needing to be assembled for sale.
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items sitting in inventory for long periods of time.
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too little merchandise being received from suppliers.
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Detailed explanation-1: -Inventory is the accounting of items, component parts and raw materials that a company either uses in production or sells. As a business leader, you practice inventory management in order to ensure that you have enough stock on hand and to identify when there’s a shortage.
Detailed explanation-2: -Answer and Explanation: The perpetual inventory system is the one with an updated record of inventory and the cost of goods sold in every sale transaction. It helps to track the balance of these accounts and to know what stocks are available for sale.
Detailed explanation-3: -The cost of inventory includes the cost of purchased merchandise, less discounts that are taken, plus any duties and transportation costs paid by the purchaser.
Detailed explanation-4: -Categorizing inventory costs Ordering costs (also called Setup costs) Carrying costs (also called Holding costs)