Among the Advantages of Cycle Counting Is That It

question 184

Multiple Choice

Among the advantages of cycle counting is that it:

• A) makes the annual physical inventory more acceptable to management.
• B) does not require the detailed records necessary when annual physical inventory is used.
• C) does not require highly trained people.
• D) allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory.
• E) does not need to be performed for less expensive items.

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Definitions:

Perfectly Elastic

Describes a situation where the quantity demanded or supplied responds infinitely at a particular price level.

ΔTR/Δq

The change in total revenue that results from selling one additional unit of a product, essentially another term for marginal revenue.

Marginal Revenue

Earnings obtained from the sale of one more unit of a good or service.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, reaching a state of balance.