Cycle Counting

question 41

Multiple Choice

Cycle counting

• A) is used to determine average cycle service level
• B) is used to identify shelves needing repair
• C) has a lower tolerance level for slower-moving items
• D) follows a schedule such that the quantity of every SKU in inventory is counted at least once a year

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Definitions:

Factory Overhead

The indirect costs associated with manufacturing, such as utilities, maintenance, and salaries for production supervisors.

Work in Process Inventory

Inventory that includes all materials and components currently being used in the production of final products but are not fully assembled.

Process Costing System

An accounting system used to ascertain the cost of a product at each process or stage of manufacturing, suitable for industries producing homogeneous products.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.