In the ABC system of inventory management, the ________ method or system is appropriate for managing B items. A) basic economic order quantity B) materials requirement planning C) two-bin D) just-in-time ANSWER A
Date: September 19th, 2020
The objective for managing inventory is to ________. A) turn over inventory as quickly as possible without losing sales from stockouts B) improve the average collection period without affecting the sales C) make payment for the inventory as slowly as possible without losing suppliers D) reduce the time taken to process inventory into finished goods […]
Date: September 19th, 2020
The ________ is an inventory technique that takes into account various operating and financial costs to determine the order quantity for a specific inventory item. A) JIT system B) ABC system C) EOQ model D) LIFO model ANSWER C
Date: September 19th, 2020
In a(n) _, the parent of a multiple-subsidiary firm issues, via an IPO, equity shares for a particular subsidiary, though the parent usually keeps majority ownership of the shares, and thus control of the subsidiary. a. asset sale b. spin-off c. equity carve-out d. targeted stock issuance ANSWER C
Date: September 19th, 2020
TRUE or FALSE: Among publicly traded U.S. nonfinancial firms, most bankruptcy announcements are complete surprises to the market, as indicated by the fact that, for over 90% of such firms, their announcement-month market equity value (MEQ) is at least as high as their MEQ at month –12 relative to the announcement. a. TRUE b. FALSE […]
Date: September 19th, 2020
According to which hypothesis below, the market generally reacts favorably to an asset sale because such sales promote efficiency by allocating assets to better uses. a. the financing hypothesis of asset sales b. the efficient deployment hypothesis c. the information hypothesis d. the fire-sales hypothesis ANSWER B
Date: September 19th, 2020
A popular extension of materials requirement planning is inventory integration automation II, which integrates data from numerous areas such as finance, accounting, marketing, engineering, and manufacturing using a sophisticated computer system. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
In a dual-class recapitalization (or ‘recap’), a firm a. creates two classes of managers—operational and financial. b. establishes two classes of securities—debt and equity. c. establishes two classes of debt securities—senior and subordinated. d. creates a second class of common stock that has limited voting rights and generally a preferential claim to the firm’s cash […]
Date: September 19th, 2020
Which of the following is true of inventory level? A) A purchasing manager would purchase higher inventories when prices are low and lower inventories when prices are high irrespective of inventory requirement. B) A marketing manager would like to have smaller inventories of finished products to ensure production of goods as per customer specification. C) […]
Date: September 19th, 2020
Which of the following is true of maintaining appropriate inventory levels? A) A financial manager’s general disposition toward inventory levels is to keep them low. B) A marketing manager would like to have low inventories of a firm’s finished products. C) A manufacturing manager would keep raw materials inventories low for the sake of lower […]
Date: September 19th, 2020
