BIOD 331 331 Exam 1 Module 3 Latest Update
2025-2026 50 Questions and 100% Verified
Correct Answers Guaranteed A+
A reduction in a company's inventory investment will result in a ___________ in cash
flow.
a. increase
b. decrease - CORRECT ANSWER: a. Increase
*Buying less inventory leaves you with MORE cash.
According to an E&Y survey of supply chain professionals, what is the priority of the
supply chain organization?
a. cutting costs
b. reducing inventory
c. improving customer service
d. improving service quality - CORRECT ANSWER: improving service quality
Asset Turnover is an indication of how productive _________________.
a. a company's assets are at generating revenue.
b. a company's sales team is at generating revenue.
c. a company is at controlling costs.
d. a company's assets are at reducing costs. - CORRECT ANSWER: a. a company's
assets are at generating revenue
Describe actions that the manufacturing organization can take to reduce product costs. -
CORRECT ANSWER: Reduce process and product waste.
Increase machine reliability.
Train workers.
Invest in technology.
, Reduce cycle time.
Reduce changeover costs.
Describe the benefits of keeping accounts receivable balances low. - CORRECT
ANSWER: Uncollected accounts receivable creates many costs for a firm. The firm has
to employ people (or a credit agency) to collect balances due. Unpaid balances may
create poor relationships between the firm selling the goods and services and the
customers owing money. Bad debt expense is likely to be greater as A/R/ balances rise.
The firm may have to borrow funds until the customers pay.
Discuss actions that a firm can take to improve revenues. - CORRECT ANSWER: -
Design products that a customer wants (understand customer needs).
- Improve quality of products.
- Price goods and services competitively, and to reflect value created.
- Develop and cross-sell complementary products and services.
- Improve product availability.
- Effectively promote products and services.
- Discount slow-moving goods.
- Train salespeople on how to best sell products and services.
How does controlling inventory levels impact the expenses of an organization? -
CORRECT ANSWER: When a firm has inventory, it has expenses related to handling,
storing, and tracking the inventory. It has expenses related to equipment and people to
move the inventory. The firm has to secure the inventory, and often will insure the value
of the inventory. With greater amounts of inventory, all of these expenses go up. Also,
firms incur expenses related to inventory damage, obsolescence and theft. These are
harder to control as the amount of inventory rises. Another impact is that when a firm's
cash is tied up in inventory, it may have to borrow cash to meet other operating needs,
so there is a cost of capital of having excess inventory.
In 2016, Apple Computer reported the following results for the 4th Quarter of operation:
Sales - Cost of Goods Sold $46,852 million
2025-2026 50 Questions and 100% Verified
Correct Answers Guaranteed A+
A reduction in a company's inventory investment will result in a ___________ in cash
flow.
a. increase
b. decrease - CORRECT ANSWER: a. Increase
*Buying less inventory leaves you with MORE cash.
According to an E&Y survey of supply chain professionals, what is the priority of the
supply chain organization?
a. cutting costs
b. reducing inventory
c. improving customer service
d. improving service quality - CORRECT ANSWER: improving service quality
Asset Turnover is an indication of how productive _________________.
a. a company's assets are at generating revenue.
b. a company's sales team is at generating revenue.
c. a company is at controlling costs.
d. a company's assets are at reducing costs. - CORRECT ANSWER: a. a company's
assets are at generating revenue
Describe actions that the manufacturing organization can take to reduce product costs. -
CORRECT ANSWER: Reduce process and product waste.
Increase machine reliability.
Train workers.
Invest in technology.
, Reduce cycle time.
Reduce changeover costs.
Describe the benefits of keeping accounts receivable balances low. - CORRECT
ANSWER: Uncollected accounts receivable creates many costs for a firm. The firm has
to employ people (or a credit agency) to collect balances due. Unpaid balances may
create poor relationships between the firm selling the goods and services and the
customers owing money. Bad debt expense is likely to be greater as A/R/ balances rise.
The firm may have to borrow funds until the customers pay.
Discuss actions that a firm can take to improve revenues. - CORRECT ANSWER: -
Design products that a customer wants (understand customer needs).
- Improve quality of products.
- Price goods and services competitively, and to reflect value created.
- Develop and cross-sell complementary products and services.
- Improve product availability.
- Effectively promote products and services.
- Discount slow-moving goods.
- Train salespeople on how to best sell products and services.
How does controlling inventory levels impact the expenses of an organization? -
CORRECT ANSWER: When a firm has inventory, it has expenses related to handling,
storing, and tracking the inventory. It has expenses related to equipment and people to
move the inventory. The firm has to secure the inventory, and often will insure the value
of the inventory. With greater amounts of inventory, all of these expenses go up. Also,
firms incur expenses related to inventory damage, obsolescence and theft. These are
harder to control as the amount of inventory rises. Another impact is that when a firm's
cash is tied up in inventory, it may have to borrow cash to meet other operating needs,
so there is a cost of capital of having excess inventory.
In 2016, Apple Computer reported the following results for the 4th Quarter of operation:
Sales - Cost of Goods Sold $46,852 million
