ABC Analysis Divides On-Hand Inventory into Three Classes, Generally Based

question 156

Multiple Choice

ABC analysis divides on-hand inventory into three classes, generally based upon which of the following?

• A) item quality
• B) unit price
• C) the number of units on hand
• D) annual demand
• E) annual dollar volume

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Definitions:

Contextual Variables

A set of four characteristics that influence the success of an organization’s design.

Organization's Design

The process of structuring an organization's roles, responsibilities, and systems in a way that aligns with its goals and strategies.

Success

Achievement of an action within a specified parameter of time, effort, or both, often measured against preset known standards of completeness, excellence, or other metrics.

Woodward's Classification

A framework developed by Joan Woodward that categorizes firms into groups based on their level of technology and how it impacts organizational structure.