To Ensure That Inventories of Both Raw Materials and Finished

question 53

Multiple Choice

To ensure that inventories of both raw materials and finished goods are sufficient to meet customer demand without undue delay,firms utilize sophisticated ________________.

• A)Just-in-time (JIT) inventory control systems
• B)Materials requirement planning (MRP)
• C)Exclusive dealing
• D)Exclusive territory
• E)Tying contract

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Definitions:

Journalize

The process of recording transactions in the general journal using the double-entry bookkeeping system.

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's accounts receivable that may not be collectible.

Uncollectible Receivables

Amounts owed to a company from customers that are considered unlikely to be collected.

Credit Balance

The amount appearing on the credit side of an account, indicating the total credits exceed the total debits.