Which of the Following Statements Regarding a Continuous Review (Q)system

question 147

Multiple Choice

Which of the following statements regarding a continuous review (Q) system for inventory control is FALSE?

• A) The reorder point is the fixed quantity Q of the item that is ordered each time inventory is replenished.
• B) The remaining inventory of an item is tracked every time a withdrawal is made.
• C) On-hand inventory, scheduled receipts and backorders are used to calculate the inventory position.
• D) A fixed quantity of inventory is ordered each time the inventory position reaches a predetermined minimum level.

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Definitions:

Prohibited By Law

Activities, actions or substances that are explicitly forbidden by legal statutes.

Disaffirm The Contract

The legal act of a party declaring a contract void and relinquishing all rights and obligations under that contract.

Intoxicated

The condition of being under the influence of alcohol or drugs to the extent that mental and motor skills are impaired.

Market Value

The amount of money a willing buyer would pay a willing seller for goods, services, or assets in a competitive marketplace.