Inventory Management Quiz
Materials management is defined as the
Management and control of inventory
Management and control of services, inventory, and equipment
Control of materials purchased
Control of the amount of materials used for patient care
In what two manners can materials management be categorized?
Equipment and materials
Ministration and clinical
Administration and patient care
Patient care and office materials
Inventory management is the
Management and control of inventory
Management and control of services, inventory, and equipment
Control of materials purchased
Control of the amount of materials used for patient care
What causes managers to face difficulties in determining the appropriate quantity of inventory to maintain?
The demand for supplies can fluctuate on the basis of patient volume.
Supplies may miss their delivery or be discontinued.
There is often a lag time between ordering and receiving the supply.
All of the above
On which financial reports of an organization do expenses associated with inventory get reflected?
Current asset on the balance sheet
Expenses on the statement of revenues and expenses
Both of the above
None of the above
Which techniques used for inventory valuation?
FIFO, LIFO, specific identification, weighted average
LIFO, FIFO, weighted average, frequent use
FO, LIFO, specific identification, frequent use
Specific identification, LIFO, FIFO, market method
When using the LIFO method of valuing inventory
The last item put into inventory is the last item taken out
The last item put into inventory is the first item taken out
The last items taken out of inventory are items with no expiration date
Materials with a long shelf life are valued
When using the FIFO method of valuing inventory
The first item taken out of inventory is the last item taken out
The first items taken out of inventory have a short shelf life
The first item put into inventory is the first item taken out
Materials with a short shelf life are valued
What are costs associated with having more than enough inventory in stock called?
Stock-out costs
Holding costs
Overstock costs
Carrying costs
Economic order quantity establishes
The maximum number of items an organization would want to purchase at one time
The quantity of items an organization should order each time to minimize costs associated with ordering
The number of items an organization can order in bulk to receive a discount
The quantity of items an organization would have to order each time to maximize costs associated with ordering
The inventory turnover ratio measures
How quickly an organization goes through routine supplies
Inventory expenses in relation to operating revenue
Costs incurred from ordering supplies in relation to total inventory expense
The number of times inventory is turned in relation to operating revenue
Just-in-time inventory is a method of holding inventory in the organization so that it can be accessed immediately prior to use.
Yes
No
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