Inventory Management (HSC SSCE Business Studies): Quizzes
📚Quizzes
Practise the questions
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Practise the questions
10 questions from this quiz
What components are included in inventory?
What components are included in inventory?
Raw materials, work-in-progress, finished
How does holding stock enable economies of scale?
How does holding stock enable economies of scale?
Bulk manufacturing/buying reduces per-unit
What percentage of inventory value can holding costs reach annually?
What percentage of inventory value can holding costs reach annually?
Up to 30%
What is opportunity cost of capital in inventory management?
What is opportunity cost of capital in inventory management?
Resources in stock can't be used elsewhere
Under LIFO, which inventory is assumed sold first?
Under LIFO, which inventory is assumed sold first?
Most recently purchased inventory
What is FIFO's impact on gross profit during rising prices?
What is FIFO's impact on gross profit during rising prices?
Higher gross profit
What is the main aim of just-in-time inventory management?
What is the main aim of just-in-time inventory management?
Minimise stock levels
Which benefit does JIT provide?
Which benefit does JIT provide?
Eliminates storage & insurance costs
What does successful JIT implementation require?
What does successful JIT implementation require?
Reliable suppliers with on-time delivery
How do JIT and LIFO/FIFO relate to each other?
How do JIT and LIFO/FIFO relate to each other?
Complementary: JIT manages, LIFO/FIFO value