Custom Furniture provides handcrafted furniture made from raw timber. Each piece of furniture is custom designed with the colour of the finish and the type of hardware (handles, knobs, etc.) to be applied chosen by the customer. A piece of furniture that has been cut and assembled and is now waiting for the finish and hardware would be counted in the _____inventory of Custom Furniture. Multiple Choice Raw materials. Derived demand Customer hold. Finished goods. Work-in-progress. Which of the following is the best definition for terms of sale? Multiple Choice The process of determining the probability that customers will or will not pay. Legal requirements by both parties to adhere to assurance guidelines. Conditions on which a firm sells its goods and services for cash or credit. Procedures followed by a firm in collecting accounts receivable. Conditions customers require for purchasing products. Which one of the following inventory items is most likely the most liquid? Multiple Choice The completed shell of a new home. Completed wheel assemblies for train locomotives. Raw sugar owned by a cereal manufacturer. Metal cabinets for washing machines. Customized spice mix sitting in the inventory of a soup company. Which of the following statements is false? Multiple Choice By extending credit, a firm typically increases its cash flow through increased gross profits. A cash discount is typically intended to be an incentive to pay early. All else the same, firms with higher markups will tend to have more flexible credit terms. The carrying costs associated with granting credit will increase as credit policies are relaxed. Whenever credit is extended to a new customer who would not otherwise pay cash, the amount the seller has at risk is the price the customer pays. Which of the following inventory management techniques would work best for firms where a small portion of inventory in terms of quantity might represent a large portion in terms of inventory value? Multiple Choice Materials requirements planning. Just-in-time approach. Aging approach. EOQ model. ABC approach