BUSI 411 UPDATED EXAM QUESTIONS AND ANSWERS 2026 PRACTICE TEST QUESTIONS WITH ACCURATE ANSWERS

BUSI 411 UPDATED EXAM
QUESTIONS AND ANSWERS 2026
PRACTICE TEST QUESTIONS WITH
ACCURATE ANSWERS
◉ little's law.
Answer: The average amount of inventory in a system is equal to the
product of the average demand rate and the average time a unit is in the
system


◉ Inventory turnover.
Answer: Ratio of annual cost of goods sold to average inventory
investment


◉ Periodic system.
Answer: Physical count of items in inventory made at periodic intervals


◉ Perpetual inventory system.
Answer: System that keeps track of removals from inventory
continuously, thus monitoring current levels of each item


◉ two bin system.
Answer: Two containers of inventory; reorder when the first is empty


◉ Point of sale system.

, Answer: Record items at time of sale


◉ Lead time.
Answer: Time interval between ordering and receiving the order


◉ Purchase cost.
Answer: The amount paid to buy the inventory


◉ Holding (carrying) costs.
Answer: Cost to carry an item in inventory for a length of time, usually a
year


◉ Universal product code.
Answer: Bar code printed on a label that has information about the item
to which it is attached


◉ ordering costs.
Answer: Costs of ordering and receiving inventory


◉ Setup costs.
Answer: The costs involved in preparing equipment for a job


◉ Shortage costs.