question archive Companies often choose to hold ___________ to serve as buffers in case of uncertainties in demand orproduction
Companies often choose to hold ___________ to serve as buffers in case of uncertainties in demand orproduction
Subject:AccountingPrice: Bought3
Companies often choose to hold ___________ to serve as buffers in case of uncertainties in demand orproduction.a.a minimum level of inventoryb.a maximum level of inventoryc.the number of units of projected sales plus a minimum level of extra inventoryd.number of units of projected sales plus a minimum level of extra inventory2. Which of the following is not included in the production budget?a.Sales forecastb.Ending inventory of work in processc.Beginning inventory of finished goodsd.Desired ending inventory of finished goods3. If the sales forecast for September is 500,000 units and the increase in finished goods inventory is50,000 units, what is the required production for September?a.550,000 unitsb.500,000 unitsc.450,000 unitsd.50,000 units4. A company’s forecasted sales for the first quarter include: 50,000 units, 65,000 units, and 70,000 units.If the company maintains 15% of the next month’s sales forecast in inventory, then what is the beginninginventory of finished goods in February?a.15,000 unitsb.9,750 unitsc.7,500 unitsd.5,000 units
