The Goal of Inventory Management Is To

question 25

Multiple Choice

The goal of inventory management is to:

• A) minimize inventory levels while maintaining an adequate supply of goods to meet customer demands.
• B) maximize inventory levels to prevent any possibility of stockouts.
• C) determine order timing and order quantity.
• D) estimate proper usage rates.
• E) integrate JIT to reduce risks of obsolescence, theft, and damage.

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Definitions:

Accounting Standards

Agreed-upon principles that govern the reporting and preparation of financial statements, ensuring consistency and comparability across entities.

Accounting Treatment

The method applied in treating transactions and events in the accounting records and financial statements, in accordance with relevant accounting principles and standards.

Current Liability

Financial obligations or debts that are due within one year or within the normal operating cycle of the business.