chapter 9 m/c

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Which of the following statements is best about inventory management?

a. inventories and production can be managed separately
b. inventory is not important at the production planning level
c. inventories are usually insignificant on the balance sheet
d. all the above are true
e. none of the above is true
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Which of the following statements is best about inventory management?

a. inventories and production can be managed separately
b. inventory is not important at the production planning level
c. inventories are usually insignificant on the balance sheet
d. all the above are true
e. none of the above is true
___________ are materials that have entered the production process and ___________ are materials that are used in the production process but do not become part of the product.
I. Raw materials
II. Work in process
III. Finished goods
IV. Maintenance, repair and operational supplies
a. I and II
b. II and III
c. III and IV
d. I and III
e. II and IV
Select the one best of the following statements:
a. inventories allow manufacturing to level out production and to satisfy peak demand
b. inventories allow manufacturing to reduce production runs, reducing unit cost
c. inventories allow manufacturers to operate different work centers at the same output
d. all the above are true
e. none of the above is true
In managing inventory, the problem is to balance the inventory investment with:
I. Customer service.
II. Costs associated with changing production levels.
III. Costs of placing orders.
IV. Transportation costs.
a. II and III only
b. III and IV
c. I, II and III only
d. II, III and IV only
e. I, II, III, and IV