An Advantage of the Fixed-Period Inventory System Is That

question 26

Multiple Choice

An advantage of the fixed-period inventory system is that:

• A) safety stock will be lower than it would be under a fixed-quantity inventory system.
• B) there is no physical count of inventory items when an item is withdrawn.
• C) no inventory records are required.
• D) orders usually are for smaller order quantities.
• E) the average inventory level is reduced.

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Definitions:

Level of Significance

Refers to the probability threshold beyond which a null hypothesis is rejected in statistical testing, typically set at 0.05 or 5%.

Obtained Value

The actual value or result that is observed or calculated during an experiment or statistical analysis.

Critical Value

A threshold value used in hypothesis testing, which, when exceeded by the test statistic, results in the rejection of the null hypothesis.

Independent-Samples T Test

A statistical test used to compare the means of two independent groups to determine if there is a statistically significant difference between them.