In the ABC Analysis of Inventory,the a Group Items

question 74

Multiple Choice

In the ABC analysis of inventory,the A group items

• A)are critical to the functioning of the organization.
• B)are the most expensive class of items.
• C)typically account for over 70 percent of the company's business in dollars.
• D)typically account for about 10 percent of a company's inventory items.
• E)All of the above

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Definitions:

Inwards Inspection

Inwards Inspection refers to the process of checking, validating, and approving materials or products received from suppliers before they are used in production or put to stock.

Rental

The payment, usually monthly, owed by a tenant to a landlord for the use of real estate, equipment, or other properties.

Insurance

A practice or agreement whereby a company provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.

Economic Order Quantity

An inventory management formula used to determine the optimal order quantity that minimizes the total costs related to ordering, receiving, and holding inventory.