#1
Which of the following is a common inventory valuation method?
FIFO
LIFO
Weighted Average
All of the above
#2
What does EOQ stand for in inventory management?
Economic Order Quantity
Effective Order Quota
Efficient Order Quality
Elastic Order Quantity
#3
In accounting, what does COGS stand for?
Cost of Goods Sold
Cash on Goods Sale
Current Order Gross Sales
Cost of Goods Store
#4
What is the primary objective of inventory management?
To minimize inventory holding costs
To maximize inventory turnover
To balance the costs of holding inventory with the costs of stockouts
To optimize production efficiency
#5
Which inventory costing method assumes that the last items purchased are the first to be sold?
FIFO
LIFO
Weighted Average
Specific Identification
#6
What does JIT stand for in the context of inventory management?
Just in Time
Justified Inventory Tracking
Joint Inventory Technique
Job in Transit
#7
What is the purpose of safety stock in inventory management?
To meet unexpected demand fluctuations
To reduce inventory costs
To optimize production efficiency
To maximize profit margins
#8
Which financial statement reflects the value of inventory at the end of an accounting period?
Balance Sheet
Income Statement
Cash Flow Statement
Statement of Retained Earnings
#9
What does the term 'lead time' refer to in inventory management?
The time it takes to manufacture a product
The time it takes to place an order and receive the goods
The time it takes to sell inventory
The time it takes to reorder inventory
#10
Which inventory management technique aims to classify items based on their importance?
ABC Analysis
Just-in-Time (JIT) Inventory
Economic Order Quantity (EOQ)
Material Requirements Planning (MRP)
#11
What does the ABC analysis in inventory management categorize items based on?
Value
Volume
Criticality
All of the above
#12
What does the term 'inventory turnover ratio' measure?
The efficiency of managing inventory
The profitability of inventory
The liquidity of inventory
The value of inventory
#13
Which of the following is NOT a method for reducing inventory costs?
Just-in-Time (JIT) inventory system
FIFO method
Inventory shrinkage
Vendor-managed inventory (VMI)
#14
What is the primary advantage of using perpetual inventory system over periodic inventory system?
Higher accuracy in inventory valuation
Lower operating costs
Reduced risk of inventory theft
Improved cash flow management
#15
Which of the following is NOT a component of inventory carrying costs?
Storage costs
Ordering costs
Holding costs
Production costs
#16
Which inventory costing method assigns the actual cost of each item to inventory?
FIFO
LIFO
Specific Identification
Weighted Average