What Is the Difference Between P and Q Inventory Systems

question 230

Multiple Choice

What is the difference between P and Q inventory systems?

• A) order size
• B) order spacing
• C) maximum service level
• D) lead time length
• E) A and B

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Definitions:

Treasury Stock

Shares that were once issued and outstanding but were subsequently repurchased by the company, reducing the number of shares on the market.

Organizational Expenses

Costs related to the formation and operation of a business entity, such as legal fees, accounting services, and incorporation fees.

Debit Balance

An accounting term referring to the remaining balance in an account when total debits exceed total credits.

Issue Price

The price at which new shares are offered to the public by a corporation during its initial public offering or subsequent issuances.