Part 1Which of the following is an example of a fixed-period inventory system?Part 2
A. A coffee shop owner decides 30 minutes before closing whether they should make a fresh pot of coffee. B. Every morning, a real estate agent schedules walk-throughs with potential home buyers. C. A bookstore owner buys copies of a popular author's books on the day they are released. D. An administrative assistant orders more legal pads on the first day of each month.

Question

Part 1Which of the following is an example of a​ fixed-period inventory​ system?Part 2
A. A coffee shop owner decides 30 minutes before closing whether they should make a fresh pot of coffee. B. Every​ morning, a real estate agent schedules​ walk-throughs with potential home buyers. C. A bookstore owner buys copies of a popular​ author's books on the day they are released. D. An administrative assistant orders more legal pads on the first day of each month.

BlackTom AI · Accepted Answer

To tackle this question, I’ll go option by option and examine what a fixed-period (or fixed-interval) inventory system means, then assess whether each scenario fits that definition.

Option A: 'A coffee shop owner decides 30 minutes before closing whether they should make a fresh pot of coffee.' This describes a local, day-to-day production decision based on the current situation near closing time. It is not an inventory system that operates on a fixed schedule for reviewing stock or placing orders; it’s a demand-driven, on-the-spot production choice. Therefore, it does not illustrate a fixed-period inventory system.

Option B: 'Every morning, a real estate agent schedules walk-throughs with potential home buyers.' Scheduling walk-throughs is about service appointments, not about managing inventory levels or placing replenishment orders at regular intervals. It concerns logistics for viewing properties rather than periodic inventory review. Thus, this is not an example of a fixed-period inventory system.

Option C: 'A bookstore owner buys copies of a popular author’s books on the day they are released.' This pattern centers on purchasing in response to a new release date, which is tied to a specific event, not a recurring, fixed interval for reviewing stock. It reflects a one-time or event-driven replenishment approach, not a fixed-period inventory review.

Option D: 'An administrative assistant orders more legal pads on the first day of each month.' This precisely describes a replenishment process that happens at a regular, fixed interval (monthly) regardless of daily stock levels, which is the hallmark of a fixed-period inventory system. Stock is reviewed (or at least replenishment is triggered) at the set time, and orders are placed then to bring inventory up to the desired level by the next period. Hence, this aligns with the concept of a fixed-period inventory system.

In summary, the distinguishing feature of a fixed-period system is the routine, calendar-based review and ordering at fixed intervals, which is exactly what option D depicts. The other options describe dynamic, event-driven, or non-inventory-related activities, which do not match the fixed-period replenishment concept.

Assignment Viewer

View Explanation

Log in for full answers

Similar Questions

Part 1A visual version of the Q systemPart 2 A. is the P system. B. is the ABC system. C. is the two-bin system. D. is the R system.

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

The CVP and break-even analysis are supported by a range of important assumptions. Which of the following is not an assumption of the CVP:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler