The Inventory Level That Triggers an Order Is Called the ________

question 33

Multiple Choice

The inventory level that triggers an order is called the ________.

• A)lot size
• B)order quantity
• C)reorder point
• D)rate of return

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Definitions:

Direct Method

A cash flow statement presentation method that shows actual cash inflows and outflows from operating activities, as opposed to the indirect method which starts with net income and adjusts for non-cash transactions.

Cash Basis

A financial recording strategy that logs earnings and expenditures upon the actual receipt or payment of money, as opposed to when they are earned or incurred.

Direct Method

A way of preparing a cash flow statement where cash receipts and payments are reported directly.

Operating Activities

Transactions and other events related to the core business operations, affecting the operational cash flows of a company.