A Periodic Inventory System

question 86

Multiple Choice

A periodic inventory system

• A) uses fixed order sizes at variable time intervals
• B) normally requires a larger safety stock
• C) cannot be used if demand is variable
• D) is used to periodically manage inventory

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Definitions:

Deadweight Loss

A reduction in economic effectiveness that happens when it's impossible to reach or the equilibrium result is not attained.

Demand Curve

A graph showing the relationship between the price of a good and the amount of that good consumers are willing to buy.

Tax

A binding monetary impost or other form of levy exacted upon a taxpayer by a governmental unit to finance the operation of the government and various public services expenses.

Sellers Receive

The amount of money that sellers are paid for their goods or services, after accounting for costs and expenses.