Certified Dietary Manager (CDM) Practice Exam

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Are you preparing for the Certified Dietary Manager (CDM) Exam? This comprehensive quiz will help you assess your knowledge and readiness for the official certification exam.

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How can just in time purchasing help the manager control costs?

  1. By increasing excess inventory

  2. By extending payment terms

  3. By limiting excess inventory

  4. By bulk purchasing all items

The correct answer is: By limiting excess inventory

Just in time purchasing is a strategy where goods are ordered only when they are needed, reducing the need for excess inventory. This helps to control costs by limiting the amount of money tied up in inventory sitting on shelves. By avoiding excess inventory, the manager can reduce costs associated with storage, inventory management, and potential waste. Therefore, option C is the correct answer as it aligns with the cost control benefits of just in time purchasing. Conversely, options A, B, and D do not accurately reflect how just in time purchasing helps control costs.

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