Par Level: System & Definition


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question 1 of 3

_____ is the quantity of an item that an organization should have on hand and ready to use.

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1. The inventory items that a business has immediate access to are known as _____ inventory.

2. Having too much inventory on hand can tie up _____ or readily available cash.

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About This Quiz & Worksheet

This quiz/worksheet is a quick way to get a read on the definition and application of par levels. You'll find questions on the components of this system as well as related terms and considerations.

Quiz & Worksheet Goals

This quiz/worksheet contains questions dealing with the following:

  • The term describing an item that an organization should have and be ready to use
  • What immediately accessible inventory items are called
  • The problems with having too much or not enough inventory on hand
  • The process of measuring how much inventory an organization should have on hand

Skills Practiced

  • Distinguishing differences - compare and contrast the results of having too much or not enough inventory
  • Defining key concepts - make sure you can match descriptions of inventory terms and systems with the appropriate word or phrase
  • Reading comprehension - ensure you've drawn important information from the lesson on the importance of inventory amount

Additional Learning

To learn more about this concept, you can check out the accompanying lesson called Par Level: System & Definition. This lesson touches on the following objectives:

  • Know what PAR stands for
  • Learn about the role of liquid assets in inventory
  • Review a provided example of how the PAR system works