Quiz Ch 20 – Inventory Liquidity: Ranking Least Liquid Items
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
What inventory item is least likely to be easily converted into cash?
What inventory item is least likely to be easily converted into cash?
What factors determine the inventory needs in a derived-demand inventory system?
What cost associated with inventory is categorized as a shortage cost?
What are the primary factors that impact a firm’s total investment in accounts receivables?
What are the accurate statements regarding credit policies, cash cycles, discount usage, revenue effects, default costs, and long-term borrowing considerations for firms?
What should customers do with credit terms of 1/5, net 21?
What will be the relationship between total costs, carrying costs, and opportunity costs of credit when a credit policy is at its optimal point?
What is the term for the quantity of items that an inventory manager orders to minimize inventory costs?
What happens at the optimal order quantity size with respect to the relationship between holding costs, restocking costs, and total costs?
What is the main objective of credit analysis?