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Test - 3 (Hospital Services)

10. In the ABC inventory management method, the 'A' items are usually: 

a) The least valuable items

b) The most valuable items

c) The items with the most units in stock

d) The items with the least units in stock

13. In inventory management, buffer stock is:

a) Stock that is counted twice

b) Stock that is stored in a buffer zone

c) Extra stock kept on hand to prevent stockouts

d) Stock that is about to expire

11. FIFO stands for:

a) First In, First Out

b) Final In, Final Out

c) First In, Final Out

d) Final In, First Out

14. The purpose of buffer stock in inventory management is to:

a) Increase storage costs

b) Prevent stockouts

c) Decrease demand

d) Increase sales

12. FIFO is a method used for:

a) Calculating taxes

b) Inventory management

c) Calculating employee wages

d) Managing customer complaints

15. The break-even point in business is the point at which:

a) Costs equal revenue

b) Profit equals loss

c) Revenue equals profit

d) Costs exceed revenue

Answer Key

  1. d  , 2. a, 3. c, 4. b, 5. b, 6. a, 7. d, 8. b, 9. c, 10. b, 11. a, 12. b, 13. c, 14. b, 15. a.

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