Which of the Following Represents a Method of Managing Inventory

question 63

Multiple Choice

Which of the following represents a method of managing inventory designed to minimize a company's investment in inventories by scheduling materials to arrive at the time they are needed for production?

• A)The economic order quantity (EOQ)
• B)Material resource planning (MRP)
• C)First-in, first-out (FIFO)
• D)Just-in-time (JIT)

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Definitions:

Adjusting Entry

An adjusting entry, in accounting, is utilized to update the records for expenses and revenues that have accrued but not yet been recorded in the general ledger by the end of an accounting period.

Accumulated Depreciation

The cumulative amount of depreciation expense recorded for fixed assets over their useful lives, reflecting the decline in the assets' value from wear and tear or obsolescence.

Depreciation Expense

The allocated amount of an asset's cost that is expensed during a given period, reflecting the asset's consumption or loss of value.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period of time.