Which of the Following Indices Would Be Most Appropriate as a Benchmark

question 8

Multiple Choice

Which of the following indices would be most appropriate as a benchmark portfolio for a large-cap mutual fund?

• A)Wilshire 5000.
• B)S&P 500.
• C)Dow Jones Industrial Average.
• D)Russell 2000.

Familiarize with benchmarking as a tool for continuous improvement through external comparisons.

Understand the concepts of reorder point, reorder quantity, lead time, and their importance in inventory management.

Grasp the factors affecting inventory needs and how they impact small business operations.

Comprehend the scheduling process steps, including routing, sequencing, dispatching, and their significance.

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Definitions:

Weighted Average Method

An inventory costing method that assigns an average cost to each item based on the total cost of goods available for sale and the number of items available.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of complete units with regards to work done or costs incurred.

Beginning Inventory

The value of a company's inventory at the start of an accounting period.

Weighted Average Method

An inventory costing method that calculates cost of goods sold and ending inventory based on the weighted average cost of all items available for sale.