Just-in-case (JIC) stock control reduces the costs of wastage and reduces the costs of storage.

5.6 Bm quiz 2

Quiz
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Business
•
12th Grade
•
Medium
Ik_kaism Ik_kaism
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25 questions
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1.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
True
False
Answer explanation
Just-in-case (JIC) stock control involves holding extra inventory to prevent stockouts, which can increase storage costs and wastage, making the statement false.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The just-in-time (JIT) stock control system avoids the use of holding stocks (inventory) as these are supplied and delivered only when needed for production.
True
False
Answer explanation
The just-in-time (JIT) stock control system indeed avoids holding stocks by ensuring that materials are delivered only when needed for production, making the statement true.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Capacity utilization measures the extent to which a firm is operating at its maximum potential level.
True
False
Answer explanation
True. Capacity utilization indicates how much a firm is using its potential output capacity. A higher percentage means the firm is closer to its maximum potential level of production.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Stocks consisting of component parts used in the production process are called raw materials.
True
False
Answer explanation
The statement is false because stocks of component parts used in production are typically referred to as 'components' or 'intermediate goods,' not raw materials, which are unprocessed resources.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Buffer stocks are back-up stocks that can consist of raw materials, semi-finished goods and finished goods.
True
False
Answer explanation
The statement is true because buffer stocks can indeed include raw materials, semi-finished goods, and finished goods, serving as a reserve to manage supply and demand fluctuations.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Labour productivity is a measure of the efficiency of workers in an organization; the more efficient they are, the higher the labour productivity.
True
False
Answer explanation
True. Labour productivity measures how efficiently workers perform their tasks. Higher efficiency leads to increased output per worker, thus indicating higher labour productivity.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
There are three types of inventory: raw materials (natural resources), semi-finished goods (work-in-progress) and finished goods (completed products ready to be sold to consumers).
True
False
Answer explanation
The statement is true as it accurately describes the three types of inventory: raw materials, semi-finished goods, and finished goods, which are essential categories in inventory management.
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