Question 1
What is the document that managers use to communicate to suppliers the items the managers want to purchase and the prices they are willing to pay?
◦ Credit memo
◦ Purchase order
◦ Statement of account
◦ Purchase specification
Question 2
What is the main advantage that managers will gain by using a perpetual inventory system?.
◦ At any point in time, managers know their inventory turnover rates.
◦ At any point in time, managers know how much product should be in inventory.
◦ At the end of the year, storage-related
product costs will be lower for managers using the perpetual inventory system.
◦ At the end of the year, storage-related
labor costs will be lower for managers using the perpetual inventory system.