Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted.

Question

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Answer 1

Question

Chapter 13, Problem 1CQ

To determine

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted.

Expert Solution & Answer

Answer to Problem 1CQ

Option c.

Explanation of Solution

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted:

a. The Just in inventory process (JIT) is mainly used for the products that strive hard to forecast demand. Moreover, Just in inventory process look for ways to minimize inventory (such as by making purchases only after sales). Hence, option “a” is an incorrect option.
b. Economic order quantity is that level of order quantity which is optimum for an organization. At EOQ, the total inventory cost is low. It is that quantity of inventory that a company should hold to reduce its inventory holding cost and ordering cost. Hence, option “b” is an incorrect option.
c. Under Material Resource Planning (MRP), the sales can be forecasted and with this information it can purchase inventory to meet the anticipated requirements. Hence, option “c” is the correct option.
d. The approach of activity based costing keeps the record of resources usage by operating activities and cost incurred for such activities. Managers can take effective and right decision with the help of activity based costing. Hence, option “d” is an incorrect option.

Conclusion

Therefore, the correct option is option c.

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Students have asked these similar questions

General accounting

Delta's inventory records for February reflect the following details: On February 1, the beginning inventory consisted of 250 units priced at $3.20 each. On February 9, Delta made its first purchase of 350 units at a cost of $3.50 each. A second purchase was made on February 18, consisting of 500 units priced at $3.70 each. By the end of the month, on February 28, Delta sold 700 units at a price of $6.50 per unit. Using the FIFO (First-In, First-Out) cost flow method, what is the cost of goods sold (COGS) for February?

Please explain the solution to this general accounting problem with accurate principles.

Answer 2

Question

Chapter 13, Problem 1CQ

To determine

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted.

Expert Solution & Answer

Answer to Problem 1CQ

Option c.

Explanation of Solution

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted:

a. The Just in inventory process (JIT) is mainly used for the products that strive hard to forecast demand. Moreover, Just in inventory process look for ways to minimize inventory (such as by making purchases only after sales). Hence, option “a” is an incorrect option.
b. Economic order quantity is that level of order quantity which is optimum for an organization. At EOQ, the total inventory cost is low. It is that quantity of inventory that a company should hold to reduce its inventory holding cost and ordering cost. Hence, option “b” is an incorrect option.
c. Under Material Resource Planning (MRP), the sales can be forecasted and with this information it can purchase inventory to meet the anticipated requirements. Hence, option “c” is the correct option.
d. The approach of activity based costing keeps the record of resources usage by operating activities and cost incurred for such activities. Managers can take effective and right decision with the help of activity based costing. Hence, option “d” is an incorrect option.

Conclusion

Therefore, the correct option is option c.

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Answer 3

Question

Chapter 13, Problem 1CQ

To determine

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted.

Expert Solution & Answer

Answer to Problem 1CQ

Option c.

Explanation of Solution

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted:

a. The Just in inventory process (JIT) is mainly used for the products that strive hard to forecast demand. Moreover, Just in inventory process look for ways to minimize inventory (such as by making purchases only after sales). Hence, option “a” is an incorrect option.
b. Economic order quantity is that level of order quantity which is optimum for an organization. At EOQ, the total inventory cost is low. It is that quantity of inventory that a company should hold to reduce its inventory holding cost and ordering cost. Hence, option “b” is an incorrect option.
c. Under Material Resource Planning (MRP), the sales can be forecasted and with this information it can purchase inventory to meet the anticipated requirements. Hence, option “c” is the correct option.
d. The approach of activity based costing keeps the record of resources usage by operating activities and cost incurred for such activities. Managers can take effective and right decision with the help of activity based costing. Hence, option “d” is an incorrect option.

Conclusion

Therefore, the correct option is option c.

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Answer 4

Question

Chapter 13, Problem 1CQ

To determine

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted.

Expert Solution & Answer

Answer to Problem 1CQ

Option c.

Explanation of Solution

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted:

a. The Just in inventory process (JIT) is mainly used for the products that strive hard to forecast demand. Moreover, Just in inventory process look for ways to minimize inventory (such as by making purchases only after sales). Hence, option “a” is an incorrect option.
b. Economic order quantity is that level of order quantity which is optimum for an organization. At EOQ, the total inventory cost is low. It is that quantity of inventory that a company should hold to reduce its inventory holding cost and ordering cost. Hence, option “b” is an incorrect option.
c. Under Material Resource Planning (MRP), the sales can be forecasted and with this information it can purchase inventory to meet the anticipated requirements. Hence, option “c” is the correct option.
d. The approach of activity based costing keeps the record of resources usage by operating activities and cost incurred for such activities. Managers can take effective and right decision with the help of activity based costing. Hence, option “d” is an incorrect option.

Conclusion

Therefore, the correct option is option c.

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Answer 5

Chapter 13, Problem 1CQ

To determine

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted.

Expert Solution & Answer

Answer to Problem 1CQ

Option c.

Explanation of Solution

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted:

a. The Just in inventory process (JIT) is mainly used for the products that strive hard to forecast demand. Moreover, Just in inventory process look for ways to minimize inventory (such as by making purchases only after sales). Hence, option “a” is an incorrect option.
b. Economic order quantity is that level of order quantity which is optimum for an organization. At EOQ, the total inventory cost is low. It is that quantity of inventory that a company should hold to reduce its inventory holding cost and ordering cost. Hence, option “b” is an incorrect option.
c. Under Material Resource Planning (MRP), the sales can be forecasted and with this information it can purchase inventory to meet the anticipated requirements. Hence, option “c” is the correct option.
d. The approach of activity based costing keeps the record of resources usage by operating activities and cost incurred for such activities. Managers can take effective and right decision with the help of activity based costing. Hence, option “d” is an incorrect option.

Conclusion

Therefore, the correct option is option c.

Answer 6

Chapter 13, Problem 1CQ

To determine

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted.

Expert Solution & Answer

Answer to Problem 1CQ

Option c.

Explanation of Solution

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted:

a. The Just in inventory process (JIT) is mainly used for the products that strive hard to forecast demand. Moreover, Just in inventory process look for ways to minimize inventory (such as by making purchases only after sales). Hence, option “a” is an incorrect option.
b. Economic order quantity is that level of order quantity which is optimum for an organization. At EOQ, the total inventory cost is low. It is that quantity of inventory that a company should hold to reduce its inventory holding cost and ordering cost. Hence, option “b” is an incorrect option.
c. Under Material Resource Planning (MRP), the sales can be forecasted and with this information it can purchase inventory to meet the anticipated requirements. Hence, option “c” is the correct option.
d. The approach of activity based costing keeps the record of resources usage by operating activities and cost incurred for such activities. Managers can take effective and right decision with the help of activity based costing. Hence, option “d” is an incorrect option.

Conclusion

Therefore, the correct option is option c.

Answer 7

Chapter 13, Problem 1CQ

To determine

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted.

Answer 8

Expert Solution & Answer

Answer to Problem 1CQ

Option c.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Identify the inventory control methods that are most likely to be used for a product in which sales can be reliably forecasted:

a. The Just in inventory process (JIT) is mainly used for the products that strive hard to forecast demand. Moreover, Just in inventory process look for ways to minimize inventory (such as by making purchases only after sales). Hence, option “a” is an incorrect option.
b. Economic order quantity is that level of order quantity which is optimum for an organization. At EOQ, the total inventory cost is low. It is that quantity of inventory that a company should hold to reduce its inventory holding cost and ordering cost. Hence, option “b” is an incorrect option.
c. Under Material Resource Planning (MRP), the sales can be forecasted and with this information it can purchase inventory to meet the anticipated requirements. Hence, option “c” is the correct option.
d. The approach of activity based costing keeps the record of resources usage by operating activities and cost incurred for such activities. Managers can take effective and right decision with the help of activity based costing. Hence, option “d” is an incorrect option.