The Two Major Decisions to Be Made When Using the Periodic

question 97

True/False

The two major decisions to be made when using the periodic review system are the target inventory level and the order quantity.

---

Definitions:

Cost-Of-Living Index

Ratio of the present cost of a typical bundle of consumer goods and services compared with the cost during a base period.

Utility Level

A gauge of the pleasure or fulfillment obtained by a customer through the use of goods and services.

Consumer Satisfaction

Consumer satisfaction measures how products or services provided by a company meet or surpass a customer's expectation.

Necessities

Basic needs or essential items required for living and maintaining a good life.