Question 1

Impulse shoplifters steal on the spur of the moment when they succumb to temptation.

Accepted Answer

Impulse shoplifters act on a sudden urge to steal without much pre-planning or intention.

Question 2

A POS system cannot be combined with the Universal Product Code labels.

Accepted Answer

A POS system can be combined with Universal Product Code (UPC) labels. In fact, many POS systems use UPC scanning technology as a way to quickly and accurately input product information into the system.

Question 3

Cash registers should be located so that cashiers have a blocked view of the entire store.

Accepted Answer

Cash registers should be located so that cashiers have an unobstructed view of the entire store for security reasons. This allows them to monitor customers and prevent theft or suspicious activity.

Question 4

Managing inventory effectively requires a business owner to monitor the company's inventory turnover ratio and to compare it with that of other firms of larger size in a different industry.

Accepted Answer

Comparing inventory turnover ratios with firms of larger size in a different industry is not effective, as different industries have varying inventory practices and benchmarks. It's more relevant to compare with similar-sized companies within the same industry.

Question 5

Kleptomaniacs have a compulsive need to steal even though they have little,if any,need for the items they shoplift.

Accepted Answer

Kleptomaniacs have a compulsion to steal and often steal items that they have no real use for, indicating that they have little need for the items they shoplift.

Question 6

Working capital can then be more effectively invested which will result in lower inventory turnover,higher cost and higher profits.

Accepted Answer

Effective investment of working capital typically aims to increase inventory turnover, reduce costs, and increase profits, not the opposite.

Question 7

In general,impulse shoplifters prefer to steal in groups,whereas juveniles and professionals operate in solidarity.

Accepted Answer

Impulse shoplifters often act alone due to the spontaneous nature of their actions, while juveniles may act in groups for peer influence, and professionals may work in teams for efficiency.

Question 8

The inventory turnover ratio expresses the number of times per year the business turns over its inventory.

Accepted Answer

The inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory on hand. The resulting number represents the number of times per year that the business sells and replaces its inventory.

Question 9

One of the best ways to prevent shoplifting is to train store personnel to be aware of shoplifters' habits and to be alert for possible theft.

Accepted Answer

Training store personnel to be aware of shoplifters' habits and to be alert for possible theft is an effective way to prevent shoplifting.

Question 10

Although only about 15 percent of shoplifters are professionals,they can severely damage a business.

Accepted Answer

While only a small portion of shoplifters are considered professionals, they can still cause significant harm to a business. They often steal high-value items or steal in large quantities, resulting in losses that can be difficult for a business to absorb. Additionally, their actions can deter other customers from shopping at the store, leading to further financial repercussions.

Question 11

Juveniles account for approximately one-fifth of all shoplifters.

Accepted Answer

The answer of Juveniles account for approximately one-fifth of all...

Question 12

Shoplifters motivated to steal to support a drug or alcohol habit are usually hard to detect because their behavior is usually stable and consistent.

Accepted Answer

Shoplifters motivated by drug or alcohol habits may exhibit erratic or suspicious behavior, making them potentially easier to detect compared to those who steal for other reasons.

Question 13

Consistent use of the system yields accurate inventory counts at any moment sporadic use creates problems.

Accepted Answer

Consistent use of the inventory system helps in maintaining accurate inventory count data. Using the system sporadically or irregularly can lead to discrepancies and problems in inventory management. Therefore, the statement is true.

Question 14

To make shoplifting charges stick,two of the things the owner/employee needs to be able to do is to identify the merchandise as belonging to the store and that it was not paid for.

Accepted Answer

In order to prove that someone shoplifted, the owner/employee needs to be able to identify the merchandise as belonging to the store and that it was not paid for. This is essential to make shoplifting charges stick.

Question 15

At a technical level,JIT is most effective in repetitive manufacturing operations where there are significant inventory levels,where production requirements can be forecast accurately,and where suppliers are an integral part of the system.

Accepted Answer

JIT (Just-in-time) is most effective in repetitive manufacturing operations where there are significant inventory levels, where production requirements can be forecast accurately, and where suppliers are an integral part of the system. This is because JIT relies on a smooth and efficient flow of materials and information between suppliers, manufacturers, and customers. Therefore, the statement is true.

Question 16

Annual dollar usage volume is simply the cost per unit of an item multiplied by the annual quantity used.

Accepted Answer

Annual dollar usage volume is calculated by multiplying the cost per unit of an item by the annual quantity used.

Question 17

Small business owners should always prosecute and not worry about negative publicity or legal entanglements.

Accepted Answer

The answer of Small business owners should always prosecute and...

Question 18

The key measure of manufacturing efficiency is the level of inventory maintained;the higher level of inventory,the more efficient the production system.

Accepted Answer

The statement is false. The key measure of manufacturing efficiency is not the level of inventory maintained, but rather the ability to produce goods in a timely manner while minimizing waste and cost. High levels of inventory can actually indicate inefficiencies in the production system, such as overproduction or poor supply chain management.

Question 19

As inventory control techniques become increasingly sophisticated and accurate,slow-moving inventory will never be "lost" in the system.

Accepted Answer

With better inventory control techniques, slow-moving inventory can be closely tracked and managed. Therefore, it is less likely to be lost or forgotten in the system.

Question 20

There are a number of different perpetual inventory systems.

Accepted Answer

Perpetual inventory systems differ in their implementation and types, such as automated systems or manual systems, depending on the business needs and size.

Quiz 18: Managing Inventory