Cost of Goods Available for Sale Is Computed by Adding

question 202

Multiple Choice

Cost of goods available for sale is computed by adding

• A) beginning inventory to net purchases.
• B) beginning inventory to the cost of goods purchased.
• C) net purchases and freight-in.
• D) purchases to beginning inventory.

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Definitions:

Bullwhip Effect

A phenomenon in supply chains where minor fluctuations in demand at the retail level cause increasingly larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Environmental Supply-Chain Risks

Risks associated with environmental factors that can affect the supply chain, including natural disasters, climate change, and resource depletion.

Process Supply-Chain Risks

Process Supply-Chain Risks involve identifying, assessing, and managing the risks associated with the operational processes in the supply chain, aiming to minimize vulnerabilities and ensure continuity.

Blanket Orders

A type of purchase order issued by a buyer to a supplier, agreeing to purchase a specific amount of goods or services over a set period, often at a predetermined price.