The optimal size of the safety stock is defined by the point where the
a. costs of carrying the safety stock equal stockout costs.
b. setup costs equal stockout costs.
c. ordering costs equal stockout costs.
d. reorder point equals safety stock.
A
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Internal controls that should be applied when a business takes a physical count of inventory should include all of the following except:
A. Prenumbered inventory tickets. B. Counters confirm the validity of inventory existence, amounts, and quality. C. Second counts by a different counter. D. Counters of inventory should be those who are responsible for the inventory. E. A manager confirms that all inventories are ticketed only once.
If the solution values of a linear program are rounded in order to obtain an integer solution, the solution is:
A) always optimal and feasible. B) sometimes optimal and feasible. C) always feasible. D) never optimal and feasible.
Which of the following procedures would weaken control over cash receipts that arrive through the mail?
A. The bank reconciliation is prepared by a person who does not handle cash or record cash receipts. B. For safety, only one person should open the mail, and that person should immediately deposit the cash received in the bank. C. The employees handling the cash receipts are bonded. D. The cashier deposits the money in the bank and the recordkeeper records the amounts received in the accounting records. E. After the mail is opened, a list (in triplicate) of the money received is prepared with a record of the sender's name, the amount, and an explanation of why the money is sent.
Which of the following is a partnership for a limited purpose?
a. A limited liability partnership b. A single partnership c. A limited liability company d. A joint venture