Quiz_ Chapter 6 quiz

Quiz_ Chapter 6 quiz - Quiz: Chapter 6 quiz

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Submitted by cmd5150 on 3/19/2010 8:42:05 PM Points Awarded 10 Points Missed 1 Percentage 91% 1. “A” items in ABC analysis are: A. normally carried in large quantities. B. particularly critical in financial terms. C. ordered infrequently. D. commonly managed by carrying inventory. E. reviewed infrequently. Points Earned: 1/1 Correct Answer: B Your Response: B 2. Sheet steel procured from an international vendor is an example of what type of inventory? A. RM B. MRO C. WIP D. FGI The key part of this question is the phrase "procured from a vendor". .. from this statement, you know the product is purchased, and therefore fall into the RM (raw material) category. Points Earned: 1/1 Correct Answer: A Your Response: A 3. A company buys 10,000 unique items. A part with a unit cost of one dollar ($1.00) would be classified as: A. C item B. B item C. Not enough information D. A item Remember that ABC analysis is based on the total annual dollar value purchases of an item. So in this case the item is a low per unit cost, but because you are not given the volume or total purchase value for the company, you cannot interpret how the ABC classification would be set. Points Earned:
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Quiz_ Chapter 6 quiz - Quiz: Chapter 6 quiz

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