Select the Description Which Most Closely Fits the Term LEAD

question 25

Multiple Choice

Select the description which most closely fits the term LEAD TIME:

• A) the time it takes to replenish an item in inventory
• B) extra inventory of an item carried to protect against variations in demand during lead time
• C) a listing of components required to manufacture a product
• D) the time when an order should be placed
• E) none of the above

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Definitions:

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a specific period, indicating efficiency in managing stock.

Inventory

The total amount of goods and materials a company has in stock, including raw materials, work-in-progress, and finished goods.

Beginning Inventory

The price of items on offer for purchase at the onset of an accounting cycle.

Markup

An addition to the purchase cost of items intended to cover both operational costs and generate a profit.