1. The primary purpose of a cash discount is to:
induce customers to pay promptly.
offset the interest charges on an account receivable.
compensate customers for an out-of-stock item.
induce customers to purchase specialty items.
2. Kelly just completed compiling a listing of her firm's accounts receivables with each invoice segregated according to the length of time the invoice has been outstanding. What is the name given to this listing?
Collection report
Credit evaluation report
Invoice schedule
Aging schedule
3. The economic order quantity (EOQ) is best defined as the:
number of items that are sold on average each month.
minimal amount of inventory that must be purchased to receive a cash discount.
restocking quantity that minimizes the total cost of inventory.
minimum amount that must be ordered to obtain the quantity discount.
4. Which one of the following is a system for managing demand-dependent inventories that minimizes the amount of inventory on hand?
Materials requirements planning
Keiretsu
Just-in-time inventory system
Kanban