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OPSY 5315 RAO EXAM 3 ACTUAL EXAM TEST BANK
2025/2026 NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND VERIFIED ANSWERS |ALREADY GRADED
A+|
When an inventory manager uses ABC analysis, which of the
following will they consider to be the most critical A item?
A. highest dollar-volume each year
B. largest demand each year
C. largest storage space required
D. highest cost per unit - ANSWER-highest dollar-volume each
year
Holding cost includes - ANSWER-housing costs, material
handling costs, warehouse laborcosts, investment costs, and
costs associated with pilferage, scrap, and obsolescence.
Investment
costs—borrowing,
taxes, and
insurance—contribute
the largest percent of overall holding cost.
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Which of the following should a company include as part of an
item's holdingcost?
A. process costs, including equipment setup
B. ordering costs, including forms and order processing
C. labor costs, including purchasing and clerical support
D. investment costs, including taxes and insurance - ANSWER-
investment costs, including taxes and insurance
Which of the following does NOT belong to holding costs?
A. insurance on inventory
B. pilferage, scrap, and obsolescence
C. storage costs
D. order processing - ANSWER-order processing
What is the cost to prepare a machine or process for production?
A. holding cost
B. set up cost
Your answer is correct.
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C. preparation cost
D. ordering cost - ANSWER-set up cost
Inventory control models assume that demand for an item is
A. always dependent on the demand for other items.
B. identical to the demand for other items.
C. always independent on the demand for other items.
D. either independent of or dependent on the demand for other
items. - ANSWER-either independent of or dependent on the
demand for other items.
Which of the following inventory items warrants the use of a
single-period inventory model?
A. steel rebar for bridge construction
B. fresh bread in a baker's case
C. disposable face masks
D. toothbrushes in popular colors - ANSWER-fresh bread in a
baker's case
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A single-period inventory model is NOT applicable for
A. milk.
B. seasonal goods.
C. newspapers.
D. furniture. - ANSWER-furniture.
Which of the following is an example of a fixed-period inventory
system?
A. A bookstore owner buys copies of a popular author's books on
the day they are released.
B. A coffee shop owner decides 30 minutes before closing
whether they should make a fresh pot of coffee.
C. Every morning, a real estate agent schedules walk-throughs
with potential home buyers.
D. An administrative assistant orders more legal pads on the first
day of each month. - ANSWER-An administrative assistant orders
more legal pads on the first day of each month.
A system that keeps track of each withdrawal or addition to
inventory continuously is
OPSY 5315 RAO EXAM 3 ACTUAL EXAM TEST BANK
2025/2026 NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND VERIFIED ANSWERS |ALREADY GRADED
A+|
When an inventory manager uses ABC analysis, which of the
following will they consider to be the most critical A item?
A. highest dollar-volume each year
B. largest demand each year
C. largest storage space required
D. highest cost per unit - ANSWER-highest dollar-volume each
year
Holding cost includes - ANSWER-housing costs, material
handling costs, warehouse laborcosts, investment costs, and
costs associated with pilferage, scrap, and obsolescence.
Investment
costs—borrowing,
taxes, and
insurance—contribute
the largest percent of overall holding cost.
, Page |2
Which of the following should a company include as part of an
item's holdingcost?
A. process costs, including equipment setup
B. ordering costs, including forms and order processing
C. labor costs, including purchasing and clerical support
D. investment costs, including taxes and insurance - ANSWER-
investment costs, including taxes and insurance
Which of the following does NOT belong to holding costs?
A. insurance on inventory
B. pilferage, scrap, and obsolescence
C. storage costs
D. order processing - ANSWER-order processing
What is the cost to prepare a machine or process for production?
A. holding cost
B. set up cost
Your answer is correct.
, Page |3
C. preparation cost
D. ordering cost - ANSWER-set up cost
Inventory control models assume that demand for an item is
A. always dependent on the demand for other items.
B. identical to the demand for other items.
C. always independent on the demand for other items.
D. either independent of or dependent on the demand for other
items. - ANSWER-either independent of or dependent on the
demand for other items.
Which of the following inventory items warrants the use of a
single-period inventory model?
A. steel rebar for bridge construction
B. fresh bread in a baker's case
C. disposable face masks
D. toothbrushes in popular colors - ANSWER-fresh bread in a
baker's case
, Page |4
A single-period inventory model is NOT applicable for
A. milk.
B. seasonal goods.
C. newspapers.
D. furniture. - ANSWER-furniture.
Which of the following is an example of a fixed-period inventory
system?
A. A bookstore owner buys copies of a popular author's books on
the day they are released.
B. A coffee shop owner decides 30 minutes before closing
whether they should make a fresh pot of coffee.
C. Every morning, a real estate agent schedules walk-throughs
with potential home buyers.
D. An administrative assistant orders more legal pads on the first
day of each month. - ANSWER-An administrative assistant orders
more legal pads on the first day of each month.
A system that keeps track of each withdrawal or addition to
inventory continuously is
