The Quantity of Inventory That a Stage of the Supply

question 22

Multiple Choice

The quantity of inventory that a stage of the supply chain either produces or purchases at a given time is

• A) an order.
• B) a job.
• C) a shipment.
• D) a lot or batch.
• E) none of the above

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Definitions:

Prepaid Freight Costs

Expenses paid in advance for the transportation of goods.

Purchases Discount

A reduction in the price paid for goods and services if payment is made within a certain period, often used to encourage early payment.

Cash Discounts

A reduction in the invoice amount by a seller to encourage early payment from the buyer, usually within a specified time frame.

Periodic Inventory

An inventory system where stock levels are checked and updated at regular, specified intervals.