An Order System in Which the Order Quantity Is Allowed

question 5

Multiple Choice

An order system in which the order quantity is allowed to vary and the order cycle is fixed is called the:

• A) periodic review system
• B) two-bin system
• C) reorder point system
• D) red-tag system
• E) none of the above

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Definitions:

FIFO Method

First-In, First-Out, an inventory valuation method where the oldest inventory items are sold or used first.