Table 1.1 You Are the Production Manager for the Toy Manufacturing Process

question 98

Multiple Choice

Table 1.1
You are the Production Manager for the toy manufacturing process at the ABC Company.

-Use the information provided in Table 1.1. An example of an external customer is:

• A) the lumber company.
• B) the Customer Service Department at ABC.
• C) the Shipping Department at ABC.
• D) the toy store at the mall.

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Definitions:

Merchandise Inventory

Goods that a company holds for the purpose of selling them to customers.

Perpetual Inventory System

A method of inventory management where updates to inventory levels are made in real-time following every sale or purchase.

Merchandise Inventory

Goods that a retail merchandising business holds for sale to customers.

Periodic Inventory System

An inventory system that records inventory purchase or sales at the end of a period rather than after each transaction.