Storage of Too Much Raw Material, WIP, And/or Finished Goods

question 26

Multiple Choice

Storage of too much raw material, WIP, and/or finished goods is which of the seven wastes?

• A) Waiting
• B) Transportation
• C) Excess inventory
• D) Excess movement

Know the roles and responsibilities in a company's financial operations.

Understand the importance of documentation in internal controls.

Recognize the various types of endorsements and their purposes.

Identify procedures for handling and recording cash transactions.

---

Definitions:

Sufficient Consideration

The concept in contract law that something of value, which is mutually agreed upon by the parties involved, must be exchanged for a contract to be legally binding.

Illusory Agreement

A contract or agreement that appears to be binding but lacks the necessary elements to enforce it, often because terms are too vague or one party has the option not to perform.

Monetary Value

The economic worth assigned to goods, services, or assets in terms of currency.

Promissory Estoppel

A legal principle that prevents a person from going back on a promise, even if it was made without formal consideration, if another person reasonably relied on that promise to their detriment.