TOEIC Reading practice is essential for improving your understanding of business-related texts, including stock inventory reports. This practice test focuses on vocabulary and grammar related to inventory management, helping you prepare for the real TOEIC exam.
Understanding key performance indicators in reports is crucial for success in both the TOEIC exam and real-world business scenarios. Let’s dive into a practice test that will help you sharpen your skills in this area.
Part 1: Incomplete Sentences
Choose the best word or phrase to complete each sentence.
-
The company’s inventory turnover ratio has __ significantly, indicating improved efficiency.
A) decreased
B) stabilized
C) increased
D) fluctuated -
The warehouse manager needs to __ the stock levels to ensure adequate supply.
A) deplete
B) monitor
C) ignore
D) exaggerate -
A __ in raw materials has led to production delays.
A) surplus
B) shortage
C) balance
D) overflow -
The inventory report shows a __ increase in finished goods over the past quarter.
A) marginal
B) declining
C) substantial
D) negligible -
To reduce carrying costs, the company aims to implement a __ inventory system.
A) maximum
B) just-in-time
C) excessive
D) static -
The auditors will __ the inventory count to ensure accuracy.
A) avoid
B) estimate
C) verify
D) manipulate -
The new software system will help __ inventory forecasting errors.
A) increase
B) maintain
C) minimize
D) exacerbate -
The company’s __ stock has been steadily decreasing over the past year.
A) volatile
B) obsolete
C) prime
D) essential -
Effective inventory management can lead to improved __ and reduced costs.
A) bureaucracy
B) confusion
C) delays
D) efficiency -
The __ of inventory items must be conducted regularly to prevent discrepancies.
A) disposal
B) reconciliation
C) accumulation
D) estimation -
The CFO emphasized the importance of maintaining an optimal __ of inventory.
A) shortage
B) excess
C) balance
D) deficit -
The company’s __ inventory method ensures that older stock is sold first.
A) random
B) reverse
C) FIFO
D) LIFO -
A sudden __ in demand has left the company with excess inventory.
A) drop
B) spike
C) stability
D) continuation -
The inventory report __ several discrepancies that need to be addressed.
A) concealed
B) highlighted
C) resolved
D) ignored -
Implementing __ control measures can help prevent inventory shrinkage.
A) lenient
B) minimal
C) stringent
D) flexible -
The company’s __ inventory levels have led to increased storage costs.
A) insufficient
B) optimal
C) excessive
D) balanced -
A __ inventory count is scheduled for the end of the fiscal year.
A) partial
B) estimated
C) comprehensive
D) superficial -
The inventory manager must __ stock levels to meet projected demand.
A) reduce
B) maintain
C) ignore
D) adjust -
The new barcode system will __ the accuracy of inventory tracking.
A) compromise
B) enhance
C) diminish
D) complicate -
Regular inventory audits help __ potential issues before they escalate.
A) create
B) overlook
C) identify
D) exacerbate -
The company’s inventory __ rate has decreased, indicating better stock management.
A) growth
B) turnover
C) acquisition
D) valuation -
Proper inventory classification is crucial for __ financial reporting.
A) misleading
B) delayed
C) accurate
D) simplified -
The inventory report shows a __ correlation between stock levels and sales performance.
A) negative
B) insignificant
C) positive
D) neutral -
Implementing cycle counting has helped __ the need for annual physical inventories.
A) increase
B) maintain
C) reduce
D) eliminate -
The company’s inventory __ costs have decreased due to improved forecasting.
A) acquisition
B) holding
C) selling
D) marketing -
A __ approach to inventory management can lead to stockouts or overstocking.
A) strategic
B) balanced
C) proactive
D) reactive -
The inventory report __ the need for better supplier management.
A) contradicted
B) underscored
C) dismissed
D) exaggerated -
Effective inventory control helps __ working capital and improve cash flow.
A) deplete
B) restrict
C) optimize
D) complicate -
The company’s __ inventory levels have resulted in improved customer satisfaction.
A) fluctuating
B) decreasing
C) consistent
D) excessive -
Regular inventory __ help identify slow-moving or obsolete items.
A) increases
B) analyses
C) manipulations
D) reductions
TOEIC Reading Practice: Inventory Management
Part 2: Text Completion
Read the following passages and choose the best word or phrase to fill each blank.
Passage 1:
Effective inventory management is crucial for any business that deals with physical goods. By (31)__ inventory levels accurately, companies can avoid both stockouts and excess inventory. Implementing a (32)__ inventory system can help businesses track stock in real-time, reducing the risk of (33)__. Regular inventory audits are essential to (34)__ discrepancies and ensure accurate financial reporting.
-
A) ignoring
B) estimating
C) monitoring
D) exaggerating -
A) manual
B) outdated
C) computerized
D) complicated -
A) profits
B) errors
C) success
D) growth -
A) create
B) identify
C) hide
D) magnify
Passage 2:
Inventory turnover is a key performance indicator that measures how quickly a company sells its inventory. A high turnover rate generally indicates efficient operations, while a low rate may suggest (35)__ inventory management. To improve turnover, businesses can focus on (36)__ demand forecasting, optimizing order quantities, and implementing just-in-time inventory practices. However, it’s important to balance turnover with (37)__ levels to avoid stockouts. Companies should also consider the (38)__ of holding excess inventory, such as storage costs and the risk of obsolescence.
-
A) excellent
B) poor
C) strategic
D) innovative -
A) ignoring
B) complicating
C) improving
D) abandoning -
A) safety stock
B) maximum stock
C) zero stock
D) random stock -
A) benefits
B) costs
C) advantages
D) profits
Passage 3:
Inventory valuation methods can significantly impact a company’s financial statements. The two most common methods are FIFO (First-In, First-Out) and LIFO (Last-In, First-Out). Under FIFO, the oldest inventory items are (39)__ first, which often results in a lower cost of goods sold and higher net income. LIFO, on the other hand, assumes that the most recently acquired inventory is sold first, potentially leading to a higher cost of goods sold and (40)__ net income. The choice between these methods depends on various factors, including the nature of the inventory, tax considerations, and the company’s financial (41)__. It’s crucial for businesses to consistently apply their chosen method to ensure (42)__ financial reporting.
-
A) purchased
B) stored
C) sold
D) produced -
A) increased
B) lower
C) stable
D) fluctuating -
A) failures
B) objectives
C) limitations
D) regulations -
A) misleading
B) delayed
C) simplified
D) accurate
Passage 4:
Effective inventory control goes beyond simply tracking stock levels. It involves a comprehensive approach to managing the entire inventory lifecycle, from procurement to sales. One key aspect is (43)__ management, which involves categorizing inventory items based on their value and importance. This allows businesses to focus their resources on the most critical items. Another important strategy is implementing (44)__ counting, where a portion of the inventory is counted on a rotating basis throughout the year. This approach can help identify discrepancies more quickly than annual physical inventories. Additionally, leveraging (45)__ technologies, such as RFID tags and automated warehouse systems, can significantly improve inventory accuracy and efficiency. By adopting these best practices, companies can optimize their inventory management, leading to improved cash flow, reduced carrying costs, and enhanced (46)__ satisfaction.
-
A) random
B) ABC
C) XYZ
D) uniform -
A) annual
B) cycle
C) perpetual
D) sporadic -
A) outdated
B) manual
C) advanced
D) simplified -
A) employee
B) supplier
C) customer
D) competitor
Answer Key
Part 1: Incomplete Sentences
- C
- B
- B
- C
- B
- C
- C
- B
- D
- B
- C
- C
- A
- B
- C
- C
- C
- D
- B
- C
- B
- C
- C
- C
- B
- D
- B
- C
- C
- B
Part 2: Text Completion
31. C
32. C
33. B
34. B
35. B
36. C
37. A
38. B
39. C
40. B
41. B
42. D
43. B
44. B
45. C
46. C
By practicing with these TOEIC Reading exercises focused on stock inventory reports, you’ll improve your understanding of business-related vocabulary and concepts. Remember that understanding key performance indicators in reports is essential for success in both the TOEIC exam and real-world business scenarios. Keep practicing and refining your skills to achieve your target TOEIC score.
