Which of the Following Statements Concerning Differences Between Continuous Review

question 23

Multiple Choice

Which of the following statements concerning differences between continuous review (Q systems) and periodic review (P systems) inventory systems is FALSE?

• A) P systems require a perpetual inventory count, while Q systems require a periodic inventory counting system.
• B) In periodic review systems, orders are placed after an elapsed period, P, has passed, for a variable quantity of units.
• C) In continuous review systems, orders are placed for a fixed quantity of goods after a variable length of time has passed.
• D) Higher than normal demand during the order cycle leads to a shorter time between orders for Q systems, while in P systems it leads to larger order sizes.

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Definitions:

Laboratory Observation

A research method in which subjects are observed in a controlled environment to ensure accuracy and control over variables.

Natural Surroundings

The physical environment around us that has not been significantly altered by human activity, including forests, rivers, and mountains.

Research Study

A structured process of investigation aimed at discovering, interpreting, or revising facts or theories.

Laboratory Observation

A research method where subjects are observed in a controlled environment to minimize external variables.