Which Is Usually NOT a Common Practice in Taking a Physical

question 59

Multiple Choice

Which is usually NOT a common practice in taking a physical inventory?

• A)Taking inventory during slow store hours
• B)Hiring an outside firm
• C)Taking inventory during the November and December holidays
• D)Taking inventory in team of two persons

Grasp the use of technology in manufacturing, including computer-aided design (CAD) and computer-integrated manufacturing (CIM).

Recognize the importance of labor supply in production facility location decisions.

Analyze the implications of inventory management systems on production efficiency.

Identify human factors to consider when choosing a production facility location.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted.

Segment Margin

The amount of profit or loss generated by a specific segment of a business, after deducting direct and allocated expenses attributable to that segment.

Common Fixed Expenses

Expenses that do not vary with the level of production or sales and are typically required to run a business, such as rent, salaries, and insurance.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold, treating fixed manufacturing overhead as a period cost.