Reducing the Obsolescence and Waste of Maintenance,repair,and Operating (MRO)supplies Through

question 5

Multiple Choice

Reducing the obsolescence and waste of maintenance,repair,and operating (MRO) supplies through better materials and inventory management will:

• A)increase the costs of disposing of MRO items that are obsolete or waste.
• B)increase carrying cost by increasing inventory levels,especially of obsolete items.
• C)improve environmental performance by increasing waste that goes into landfills or incinerators.
• D)simultaneously reduce costs and improve environmental performance.
• E)have little impact because MRO is a small percentage of annual spend and the items usually have low environmental impact.

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Definitions:

Cost Of Goods Available

The total cost of inventory available for sale during a period, calculated as beginning inventory plus purchases minus ending inventory.

Periodic Inventory System

An accounting method where inventory is physically counted at specific intervals to determine the level of inventory and cost of goods sold.

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Statement Of Financial Position

A balance sheet is a financial statement that outlines a company's equity, liabilities, and assets at a certain date.