Russ Is the Manager of a Retail Company

question 95

Multiple Choice

Russ is the manager of a retail company.He is having problems in managing and controlling the stock level required for items that are selling well as compared to items that are not selling well.What control mechanism could Russ implement to address this problem?

• A)economic order quantity
• B)reorder point
• C)material requirements planning
• D)just-in-time inventory

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Definitions:

Total Cost Transferred

The aggregate cost of goods or services that is moved from one process or department to another in the production process.

First Processing Department

The initial stage or department in a manufacturing process where raw materials begin their transformation into finished goods.

Transferred Out

This term is used in accounting to describe costs or goods that are moved from one production process or department to another.

Materials

Raw substances used in the manufacturing process to create a finished product.