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The Basic Philosophy Behind ____________ Is to Economize on Inventory

question 90

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The basic philosophy behind ____________ is to economize on inventory holding costs by having materials arrive at a manufacturing plant when needed to enter the production process?


Definitions:

Physical Inventory

An actual count of all merchandise or stock on hand, conducted periodically to ensure the accuracy of inventory records.

Net Income

The total profit of a company after all revenues and gains are added together and all expenses and losses are subtracted.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for the goods once the seller ships them.

Net Income

The total earnings of a company after subtracting all costs and expenses, including taxes and interest, from its total revenues.

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