In a Pull Supply Chain, There Is Less Likelihood of Being

question 31

True/False

In a pull supply chain, there is less likelihood of being overstocked or out of stock because the store requests for merchandise are based on customer demand.

Comprehend the effects of different inventory valuation methods (LIFO, FIFO, and weighted average) on financial statements.

Recognize the importance of consistency in accounting methods for comparability of financial statements.

Identify the components of inventory cost.

Understand inventory ownership and the point of passing ownership, including consignment and goods in transit.

---

Definitions:

Turnover

The rate at which inventory is sold and replaced over a given period or the rate at which employees leave and are replaced in a company.

Investment Opportunity

A potential financial venture, asset, or avenue that promises to yield returns or appreciates in value over time, warranting initial expenditure or investment.

Margin

The difference between the selling price of a good or service and its production or acquisition cost, often expressed as a percentage of the selling price.

Net Operating Income

A measure of a company's profitability that excludes non-operating income and expenses, such as interest.