The Purpose of the Strategic Inventory Is to Help the Manager

question 39

Multiple Choice

The purpose of the strategic inventory is to help the manager

• A) size up the environment accurately.
• B) determine how much inventory is on hand.
• C) involve workers at all levels in formulating strategy.
• D) develop operating plans.

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Definitions:

Periodic Inventory System

An inventory accounting system where updates to the inventory accounts are made on a periodic basis, rather than continuously.

Merchandise Inventory

Items that a company holds for the purpose of resale to customers in the ordinary course of business.

Gross Method

An accounting approach for recording purchases at the invoice price without deduction of any cash discounts offered.

Perpetual Inventory System

A strategy for managing inventory accounting that utilizes computerized point-of-sale systems and enterprise asset management software to immediately document sales or purchases.