The Inventory Management Approach That Attempts to Minimize,if Not Eliminate,carrying

question 54

Multiple Choice

The inventory management approach that attempts to minimize,if not eliminate,carrying and stockout costs is

• A) materials requirements planning.
• B) economic order quantity.
• C) just-in-time inventory.
• D) evaluated receipt settlement.

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Definitions:

Direct Labor Cost

The total expense of employing workers to produce a product or provide a service, excluding indirect labor costs.

Work In Process

Inventory that includes materials that have been partially processed but are not yet completed products in a manufacturing setting.

Job-Order Costing

A cost accounting system that accumulates manufacturing costs separately for each job or order, suitable for industries producing customized products.

Overapplied Overhead

A situation where the allocated overhead cost in accounting is more than the actual overhead incurred.