The Fixed-Order-Interval Model Would Be Most Likely to Be Used

question 73

Multiple Choice

The fixed-order-interval model would be most likely to be used for this situation

• A)A company has switched from mass production to lean production.
• B)Production is done in batches.
• C)Spare parts are ordered when a new machine is purchased.
• D)Grouping orders can save shipping costs.
• E)Demand is highly variable

---

Definitions:

Accounts Receivable Turnover

A financial ratio that measures how many times a company can turn its accounts receivable into cash during a period.

Accounts Receivable Turnover

A financial metric that measures how many times a company can turn its accounts receivable into cash within a given period.

Adjusting Entry

A journal entry made at the end of an accounting period to update account balances before preparing financial statements, ensuring they reflect the true financial position.

Financial Statements

Financial reports that summarize the effects of events on a business.