Inventory Needs Under a Derived-Demand Inventory System Are

question 38

Multiple Choice

Inventory needs under a derived-demand inventory system are:

• A) Primarily dependent upon the competitive demands placed on a firm's suppliers.
• B) Based on the anticipated finished goods level of inventory.
• C) Based on minimizing the cost of restocking inventory.
• D) Held constant over time.
• E) Determined by a kanban system.

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Definitions:

Cash Expenses

Outflows of cash during a particular period for operational activities, excluding non-cash expenses like depreciation.

CCA Class

CCA Class, or Capital Cost Allowance Class, involves categorizing depreciable assets into classes for tax purposes in Canada, affecting the rate at which assets can be depreciated.

Operating Cash Flow

This represents the cash a company generates from its regular business operations, affecting the liquidity and overall health of the business.

Tax Rate

The percentage at which an individual or corporation is taxed, often applied to income, property, or sales, and varies by jurisdiction and income level.