The ________ is the probability that the inventory available during lead time will meet demand
A) service level
B) inventory level
C) reorder point
D) maximum inventory level
Answer: A
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Risk that can be eliminated by diversification is
A. unsystematic risk. B. systematic risk. C. default risk. D. interest-rate risk.
An auditor will use the IT test data method in order to gain certain assurances with respect to the
A. Input data. B. Application controls contained within the program. C. Machine capacity. D. Degree of keypunching accuracy.
Which of the following costs is least likely to be relevant in deciding whether to accept a special order?
A) Variable direct labor costs B) Variable selling costs C) Fixed manufacturing overhead D) Variable packaging and shipping costs
Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters
Quarter Demand Previous quarter's output 800 units 1 700 Beginning inventory 0 units 2 900 Stockout cost $100 per unit 3 1200 Inventory holding cost $10 per unit at end of quarter 4 600 Hiring workers $20 per unit Laying off workers $40 per unit Subcontracting cost $200 per unit Unit cost $100 per unit Which of the following production plans is better: Plan A–chase demand by hiring and layoffs; Plan B–pure level strategy, or Plan C–700 level with the remainder by subcontracting?