Inventory Management Quiz

What is the primary goal of inventory management?

• Maximize sales

• Increase product variety

• Enhance marketing strategies

• Minimize storage costs

Which method involves checking inventory levels at regular intervals?

• ABC analysis

• Safety stock

• Periodic review

• Perpetual system

What does FIFO stand for in inventory management?

• Final-In, First-Out

• Fast-In, Fast-Out

• First-In, Final-Out

• First-In, First-Out

Which inventory valuation method is not compliant with PSAK/IFRS?

• Specific Identification

• FIFO

• LIFO

• Average Cost

What is the purpose of safety stock?

• To reduce storage costs

• To protect against stockouts

• To improve product quality

• To increase sales

In the FIFO method, how is the cost of goods sold calculated?

• Using the latest purchase prices

• Using the average cost

• Using the oldest purchase prices

• Using the highest purchase prices

What is the impact of using LIFO during times of rising prices?

• No impact on financial statements

• Lower cost of goods sold

• Higher ending inventory value

• Higher cost of goods sold

Which of the following is a characteristic of the average cost method?

• It tracks specific items

• It is the most complex method

• It smooths out price fluctuations

• It uses the most recent prices

What is the effect of inventory valuation on the balance sheet?

• It determines profit margins

• It affects cash flow

• It has no effect

• It impacts asset valuation

What does ABC analysis classify inventory based on?

• Value and usage frequency

• Size and weight

• Supplier and location

• Color and shape