An Inventory System Is a Set of Policies and Controls

question 32

True/False

An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be.

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Definitions:

Retained Earnings

Profits that a company decides to keep or reinvest in the business after dividends have been paid out to shareholders, reflecting ongoing financial health and potential for growth.

Net Income

The ultimate financial gain of a company after expenses and taxes are deducted from its total revenue.

Net Working Capital

A measure of a business's short-term financial performance, shown by the balance between its current assets and liabilities.