To Reduce the Risk of Allowing an Order to Proceed

question 8

Multiple Choice

To reduce the risk of allowing an order to proceed when goods are not available or rejecting an order when goods are available,it is important to:

• A)maintain accurate and timely perpetual inventory records and periodically conduct physical inventory checks.
• B)maintain accurate and timely perpetual inventory records and constantly conduct physical inventory checks.
• C)maintain accurate and timely periodic inventory records and periodically conduct physical inventory checks.
• D)maintain accurate and timely periodic inventory records and constantly conduct physical inventory checks.

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Definitions:

Average Fixed Costs

The total fixed costs of production divided by the quantity of output produced, indicating how fixed costs change with different levels of production.

Marginal Costs

The increase in total cost that arises from an extra unit of production.

Fixed Factors

Inputs in production that cannot be altered in the short term, such as buildings and machinery.

Output

The amount of goods and services produced by a business, industry, or economy.