The most useful inventory costing method which enables purchase price variance analysis is:

• A.average costing.
• B.standard costing.
• C.last in first out (LIFO) costing.
• D.first in first out (FIFO) costing.

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Which of the following outcomes occurs when direct shipping is used instead of a distribution network?

• A.Inventory velocity is reduced.
• B.Inventory obsolescence is reduced.
• C.Order-fill rates are reduced.
• D.Outbound transportation cost is reduced.

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Which of the following factors is the most appropriate measure of delivery performance for finished goods?

• A.Perfect order fulfillment
• B.On-time delivery
• C.Load efficiency
• D.Available-to-promise

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The recovery element of a reverse logistics supply chain strategy is best illustrated by:

• A.the use of rechargeable batteries by an individual
• B.the use of refillable containers by a water bottling company.
• C.a grower selling fresh-produce scrap to other farmers
• D.the reduction of energy consumption by a manufacturer

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A supplier disputes a low rating generated by a company's enterprise resources planning (ERP) system. Which of the following actions by the purchasing agent is most appropriate?

• A.Advise the ERP information technology manager that there is a flaw in the rating system.
• B.Scrap the vendor rating system until the company can figure out what is wrong.
• C.Compare the vendor and company detail records, and interview company employees who handled the data.
• D.Tell the supplier that, regardless of the disputed claims, the supplier must improve performance.

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