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Read the Paragraph Below and Answer the Questions That Follow

question 9

Multiple Choice

Read the paragraph below and answer the questions that follow.
(1) Learning to make a budget is the key to managing your hard-earned money. (2) First, select your budget period, usually a week or a month. (3) Second, estimate your income for that time period as accurately as you can. (4) Include not only your salary after payroll deductions, but the least you expect to make from other sources, such as tips, bonuses, and commissions. (5) Third, add up all your expenses for the budget period. (6) Be sure to add in your fixed costs ⎯ like rent, utilities, tuition, and taxes ⎯ as well as savings. (7) Also include your variable expenses. (8) The most difficult ones to estimate, variable expenses include all your nonfixed living costs, from money for food and transportation to planned events like vacations and less predictable ones like medical and home repair bills. (9) Fourth, subtract your expenses from your income to see whether you need to adjust your budget. (10) If your expenses are greater than your income, look for ways to cut costs ⎯ for example, on clothing. (11) If your income is greater than your expenses, you have the luxury of splurging or saving extra money for that car or trip you have always wanted. Select the number of the topic sentence in the paragraph above.

Definitions:

Cycle Inventory

Cycle Inventory refers to the portion of inventory available in a warehouse or storage that is held to meet the regular sales demand.

Safety Inventory

Extra stock kept on hand to prevent stockouts and ensure product availability despite uncertainties in demand or supply lead times.

Throughput

The quantity of goods and materials passing through a system or process in a given period, often used to measure the efficiency of production processes.

Inventory Rate

The speed at which inventory is sold or used over a particular period, often indicating the efficiency of inventory management.