1. Which of the following drives all other operating budgets? a) Purchases budget b) Sales budget c) Production budget d) Marketing and distribution budget 2. Which of the following is not a factor in the EOQ inventory model? a) Cost to carry one additional unit in inventory b) Annual demand for the inventory in units c) Cost to place one additional order d) All of the following are factors in the EOQ model. 3. Which of the following is a feature of a JIT inventory system? a) Amount of production based on pull of consumer demand. b) Plan to keep assembly line moving at all cost. Difficulty: Easy c) Sufficient inventory on hand to meet unexpected demand. d) Plan to sell slightly defective products to meet demand of bargain hunting consumers