Two Basic Measures of Inventory Are Inventory Turnover and Average

question 9

Multiple Choice

Two basic measures of inventory are inventory turnover and average aggregate inventory. What is the third?

• A)inventory depreciation  
• B)inventory amortization  
• C)weeks of supply  
• D)multifactor inventory

Understand the principle of respondeat superior and its application.

Learn the rules governing the termination of an agency relationship.

Identify the responsibilities and liabilities associated with hiring practices and the torts committed by employees.

Analyze the role of ratification in binding principals to agents' agreements.

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Definitions:

Labour Rate Variance

The difference between the actual cost of labor and its expected cost based on standards set for production.

Labour Efficiency Variance

The difference between the actual labor hours used in production and the standard hours expected, multiplied by the standard labor rate.

Standard Costing

A cost accounting method that uses standard costs—the expected costs of labor, material, and overhead—to compare against actual costs.

Variable Overhead

encompasses the costs of production that vary with the level of output, such as utilities and materials, as opposed to fixed overheads.