Take this quick test on inventory management to help you prepare for your exams and interviews. This test is especially useful for accounting and finance students.
The multiple choice question (MCQ) quiz has 10 questions with 4 potential answers each. Once you complete this short quiz, you should be able to perform well in any related exam or interview.
[watupro 6] Next Quiz: Budgeting MCQs
Inventory Management - MCQs FAQs
The primary purpose of Inventory Management is to ensure there is enough goods or materials to meet demand without creating overstock, or excess inventory.
There are four main types of inventory: raw materials/components, WIP, finished goods, and MRO
Inventory Management is a systematic approach to sourcing, storing, and selling inventory—raw materials (components) and finished goods (products). In business terms, Inventory Management means the right stock, at the proper levels, in the right place, at the right time, and at the correct cost and price.
The three most common Inventory Management strategies that most manufacturers operate by the pull strategy, the push strategy, and the just in time (JIT) strategy.
One Inventory Management example is when a company orders too much of a product and then has to sell it at a discounted price. This can negatively impact the company's profit margin.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.