Order Lead Time Refers To

question 10

Multiple Choice

Order lead time refers to:

• A) the length of time before a customer wishes to have goods delivered.
• B) the length of time before needing to reorder inventory items.
• C) the length of time taken to process an order and transport the items).
• D) the length of time before competitors begin to stock a specialty item.

---

Definitions:

FIFO

This inventory management and valuation method assumes that the oldest products are sold or used first; an acronym for "First In, First Out," detailing a specific approach to inventory and asset management.

Periodic Inventory System

An inventory accounting system where stock levels and cost of goods sold are calculated at the end of an accounting period, rather than being continuously updated.

Ending Inventory

The price of items for sale at the closing of a fiscal period.

Lower Of Cost

An accounting principle stating that inventory or other assets should be recorded at the lower of either the original cost or the current market value.