SCMA 331 - CH 12 EXAM QUESTIONS
WITH 100% CORRECT ANSWERS {
GRADED A+}
Which of the following statements regarding Amazon.com is FALSE? - ✔✔B)
The company was founded as, and still is, a "virtual" retailer with no inventory.
Which of the following would NOT generally be a motive for a firm to hold
inventories? - ✔✔D) to minimize holding costs
Which of the following is a function of inventory? - ✔✔E) All of the above are
functions of inventory.
Which of the following is NOT one of the four main types of inventory? - ✔✔D)
safety stock inventory
, Which of the following statements about ABC analysis is FALSE? - ✔✔D) ABC
analysis is based on the presumption that all items must be tightly controlled to
produce important cost savings.
All EXCEPT which of the following statements about ABC analysis are true? -
✔✔D) ABC analysis suggests that all items require the same high degree of
control.
ABC analysis is based upon the principle that: - ✔✔B) there are usually a few
critical items, and many items that are less critical.
Cycle counting: - ✔✔B) eliminates annual inventory adjustments.
ABC analysis divides on-hand inventory into three classes, - ✔✔E) annual dollar
volume
Which of the following statements regarding control of service inventories is
TRUE? - ✔✔C) Effective control of all goods leaving the facility is one
applicable technique.
Among the advantages of cycle counting is that it: - ✔✔D) allows more rapid
identification of errors and consequent remedial action than is possible with annual
physical inventory.
WITH 100% CORRECT ANSWERS {
GRADED A+}
Which of the following statements regarding Amazon.com is FALSE? - ✔✔B)
The company was founded as, and still is, a "virtual" retailer with no inventory.
Which of the following would NOT generally be a motive for a firm to hold
inventories? - ✔✔D) to minimize holding costs
Which of the following is a function of inventory? - ✔✔E) All of the above are
functions of inventory.
Which of the following is NOT one of the four main types of inventory? - ✔✔D)
safety stock inventory
, Which of the following statements about ABC analysis is FALSE? - ✔✔D) ABC
analysis is based on the presumption that all items must be tightly controlled to
produce important cost savings.
All EXCEPT which of the following statements about ABC analysis are true? -
✔✔D) ABC analysis suggests that all items require the same high degree of
control.
ABC analysis is based upon the principle that: - ✔✔B) there are usually a few
critical items, and many items that are less critical.
Cycle counting: - ✔✔B) eliminates annual inventory adjustments.
ABC analysis divides on-hand inventory into three classes, - ✔✔E) annual dollar
volume
Which of the following statements regarding control of service inventories is
TRUE? - ✔✔C) Effective control of all goods leaving the facility is one
applicable technique.
Among the advantages of cycle counting is that it: - ✔✔D) allows more rapid
identification of errors and consequent remedial action than is possible with annual
physical inventory.
