9) Businesses that maintain inventories must prepare a Cash Flow Statement: True False 10) The Inventory management type in which items are constantly tracked from production through final sale is called: Supply Chain Management Perpetual Inventory RFID Periodic Inventory 11) Which of the following is NOT an Inventory management best practice: Preventing Stock-outs Passive RFID Tags MRP systems Minimizing Turn-over 12) A previously used piece of machinery is purchased from XYZ company, who has fully depreciated the equipment in their accounting system after using it in production. When bought new, the machine cost $1,000,000, and XYZ company took a total of $800,000 in depreciation before selling the machine to us, using an assumption of $200,000 salvage value at the end of it's useful life. We paid XYZ company $150,000 for this machine, and estimate we will use it in our production line for 4 years. What is the maximum amount of depreciation we can claim against this machine? Nothing; the machine has already been fully depreciated over it's useful life. The difference between our purchase price, $150,000, and the estimated value of the machine in 4 years. $150,000; the total purchase price, as the machine is already beyond it's useful life. $100,000; the purchase price ($150, 000), less the difference in value between the XYZ salvage value and their sell price