C215 Practice Quiz Ch 12 Question and
answers already passed 2026
Raw materials inventory
1. What do we call purchased items or extracted
ma-terials that will be transformed into
components or products?
2. Hand tools, lubricants, and cleaning supplies are Maintenance, repair,
usu-ally examples of what? and operating
3. What does customer service mean in inventory inventory
man-agement?
Whether or not a
product is available
4. What are the three areas for Inventory objectives? Customer service, cost-ef-
ficient operations, and
minimum inventory
invest-ment
5. What measurement does a company use for its Inventory turnover
mini-mum inventory investment?
6. What level of average inventory must be
maintained on hand to provide 4 hours of 48 units
production supply if the average material
consumption rate is 12 units per hour?
7. Holding costs have three components: capital,
stor-age, and
risk costs.
8. Ordering costs are fixed costs for placing an order with setup costs for in-
house
a supplier or production.
9. Shortage costs are incurred when demand exceeds supply.
10. What do you call it when you delay delivery to Back order
the customer until the item becomes
available?
1/
7
, C215 Practice Quiz Ch 12
11.ABC inventory classification a method for
is determining the
level of control
and fre-quency
12.What is the purpose of periodic of review.
counting? inventory records
To on-hand
match satisfy
auditors that
values
13. Which of the following techniques for determining or- Lot-for-lot
der quantity entails ordering exactly what is needed?
14. As safety stock increases, the customer service
lev-el increases and
inventory investment
increases.
15. How can both the just-in-time ( JIT) and EOQ By considering the
inventory theories effectively be reconciled?
setup cost as a
variable instead of a
parameter.
16. Which of the following is used in determining the order Target inventory level
quantity in the periodic review system?
17. In a periodic review inventory system, how many units Target inventory level -
are ordered? on-hand balance
18. Provides a cushion against unexpected demand. Fluctuation inventory
19. A measure of inventory policy effectiveness. Inventory turnover
20. A physical inventory is taken periodically, usually annu- Periodic counting
ally.
21. Provides an up-to-date inventory balance. Perpetual inventory record
2/
7
answers already passed 2026
Raw materials inventory
1. What do we call purchased items or extracted
ma-terials that will be transformed into
components or products?
2. Hand tools, lubricants, and cleaning supplies are Maintenance, repair,
usu-ally examples of what? and operating
3. What does customer service mean in inventory inventory
man-agement?
Whether or not a
product is available
4. What are the three areas for Inventory objectives? Customer service, cost-ef-
ficient operations, and
minimum inventory
invest-ment
5. What measurement does a company use for its Inventory turnover
mini-mum inventory investment?
6. What level of average inventory must be
maintained on hand to provide 4 hours of 48 units
production supply if the average material
consumption rate is 12 units per hour?
7. Holding costs have three components: capital,
stor-age, and
risk costs.
8. Ordering costs are fixed costs for placing an order with setup costs for in-
house
a supplier or production.
9. Shortage costs are incurred when demand exceeds supply.
10. What do you call it when you delay delivery to Back order
the customer until the item becomes
available?
1/
7
, C215 Practice Quiz Ch 12
11.ABC inventory classification a method for
is determining the
level of control
and fre-quency
12.What is the purpose of periodic of review.
counting? inventory records
To on-hand
match satisfy
auditors that
values
13. Which of the following techniques for determining or- Lot-for-lot
der quantity entails ordering exactly what is needed?
14. As safety stock increases, the customer service
lev-el increases and
inventory investment
increases.
15. How can both the just-in-time ( JIT) and EOQ By considering the
inventory theories effectively be reconciled?
setup cost as a
variable instead of a
parameter.
16. Which of the following is used in determining the order Target inventory level
quantity in the periodic review system?
17. In a periodic review inventory system, how many units Target inventory level -
are ordered? on-hand balance
18. Provides a cushion against unexpected demand. Fluctuation inventory
19. A measure of inventory policy effectiveness. Inventory turnover
20. A physical inventory is taken periodically, usually annu- Periodic counting
ally.
21. Provides an up-to-date inventory balance. Perpetual inventory record
2/
7
