Cycle Counting

question 45

Multiple Choice

Cycle counting

• A) is a process by which inventory records are verified once a year
• B) provides a measure of inventory accuracy
• C) provides a measure of inventory turnover
• D) assumes that all inventory records must be verified with the same frequency
• E) assumes that the most frequently used items must be counted more frequently

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Definitions:

Marginal Utility

The additional satisfaction or benefit received by a consumer from consuming one more unit of a good or service.

Consumer Equilibrium

A state in microeconomics where a consumer achieves the highest satisfaction possible, given their income constraints and prices of goods and services.

Prices

The amount of money required to purchase a good or service, reflecting the value placed on it by the market.

MU/P

The ratio of marginal utility (MU) to price (P), representing the additional satisfaction gained per unit of currency spent.