Reference no: EM132172518

1. Inventory turnover is computed by

a) dividing the cost of goods sold by the average aggregate inventory value.

b) dividing the average aggregate inventory value by costs of goods sold.

c) multiplying the average aggregate inventory value by cost of goods sold.

d) subtracting cost of goods sold from the average aggregate inventory value.

2. Which of the following statements regarding fixed costs is true?

a. Fixed costs rise by a constant amount for every added unit of volume.

b. Fixed costs do not vary with volume.

c. Fixed costs are those costs associated with direct labor and materials.

d. Fixed costs equal variable costs at the break-even point.

e. Fixed cost is the difference between selling price and variable cost.

3. One way to reduce the bullwhip effect is for supply chain members to

a. make ordering decisions independently of each other.

b. create demand forecasts independently of other supply chain members.

c. share demand forecasts with other supply chain members.

d. restrict information flows between supply chain members.