Which of the Following Are Advantages of Reducing Inventory

question 5

Multiple Choice

Which of the following are advantages of reducing inventory?
I. Engineering changes can be made sooner.
II. Quality can be improved.
III. Less space is needed in manufacturing.
IV. Lead time will be shorter.

• A) all the above
• B) only I, II and III
• C) only I, II and IV
• D) only II, III and IV
• E) only III and IV

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Definitions:

Office Supplies

Items used in an office for daily work such as pens, paper, staplers, and calculators.

Physical Count

A manual counting process of inventory or other assets on hand to verify quantities or conditions at a specific point in time.

Straight-Line Depreciation

A method of depreciating an asset evenly over its useful life, resulting in equal annual depreciation expenses.

Salvage Value

The anticipated end-of-use life resale worth of an asset, factored into depreciation estimations.