Chapter 11

Chapter 11 - Chapter 11 Which of the following inventory...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11 Which of the following inventory control methods is most likely to be used by a company that purchases inventory in response to customer orders? a. JIT (Correct. JIT seeks to minimize inventory by only making purchases after sales.) b. EOQ (Incorrect. EOQ represents the optimal amount of inventory to purchase to minimize the sum of ordering, carrying, and stockout costs.) c. MRP (Incorrect. MRP forecasts sales and uses that information to purchase inventory to meet anticipated needs.) d. ABC (Incorrect. ABC is a method for stratifying inventory according to importance and scheduling more frequent inventory counts for the more important items.) Which of the following matches is performed in evaluated receipt settlement? a. the vendor invoice with the receiving report (Incorrect. ERS eliminates the vendor invoice.) b. the purchase order with the receiving report (Correct. ERS eliminates the vendor invoice and schedules payments based on matching the purchase order and receiving report.) c. the vendor invoice with the purchase order (Incorrect. ERS eliminates the vendor invoice.) d. the vendor invoice, the receiving report, and the purchase order (Incorrect. ERS eliminates the vendor invoice.) Which of the following is true? a. ERS systems use disbursement vouchers. (Incorrect. Disbursement vouchers are used in voucher systems.) b. Setting up petty cash as an imprest fund violates segregation of duties. (Correct. Technically, setting up petty cash as an imprest fund violates segregation of duties because the same person has custody of the asset (cash), authorizes its disbursement, and maintains records.) c. The EOQ formula is used to identify the reorder point. (Incorrect. The EOQ formula is used to determine how much to order.) d. A voucher package usually includes a debit memo. (Incorrect. Voucher packages consist of the purchase order, receiving report, and vendor invoice (if one is received); debit memos are used to record adjustments of accounts payable.) Which document is used to establish a contract for the purchase of goods or services from a supplier? a.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Chapter 11 - Chapter 11 Which of the following inventory...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online