) Service companies must carry a large amount of inventory to meet consumer
demand.
Answer: FALSE
2)Manufacturing companies usually have three types of
... [Show More] inventory.
Answer: TRUE
3) Retailers sell their products to consumers.
Answer: TRUE
4)Merchandising companies include both wholesalers and retailers.
Answer: TRUE
5) All companies have the same types of inventories.
Answer: FALSE
6)Only manufacturing companies have finished goods inventory.
Answer: TRUE
7) Which of the following are merchandising companies?
A) Manufacturers
B) Retailers
C) Wholesalers
D) Both retailers and wholesalers
Answer: D
8)Which of the following types of companies has raw materials, work in process
and finished goods inventory?
A) Retailers
B) Manufacturers
C) Wholesalers
D) Service companies
Answer: B
9)Which type of company makes up the largest sector of the United States
economy?
A) Manufacturers
B) Merchandising
C) Wholesalers
D) Service companies
Answer: D
10) The balance sheet of a service company has
A) raw materials inventory.
B) little or no inventory.
C) three categories of inventory.
D) two categories of inventory.
Answer: B
11) Schlabig & Associates, a public accounting firm that provides business
consulting to a consumer, is what type of company?
A) Manufacturer
B) Retailer
C) Service
D) Wholesaler
Answer: C
12) Jiffy Lube, an automotive maintenance company, is primarily what type of
company?
A) Manufacturer
B) Retailer
C) Wholesaler
D) Service
Answer: D
13) Among other products, Nabisco makes Oreo cookies. Which type of company is
Nabisco?
A) Service
B) Manufacturer
C) Retailer
D) Wholesaler
Answer: B
14) Which type of company typically produces its own inventory?
A) Manufacturer
B) Service company
C) Retailer
D) Wholesaler
Answer: A
15) What type of company resells tangible products it purchases ready-made from
suppliers?
A) Merchandiser
B) Retailer
C) Wholesaler
D) All of the above
Answer: A
16) Before these materials are used to manufacture its cars, Toyota classifies steel,
glass, and plastic as
A) raw materials inventory.
B) finished goods inventory.
C) work in process inventory.
D) merchandise inventory.
Answer: A [Show Less]