Certified Dietary Manager (CDM) Practice Exam

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Prepare for the Certified Dietary Manager (CDM) Exam. Study with flashcards and multiple-choice questions, each question provides hints and explanations. Get ready for your 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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