Use the Graph Below to Answer the Question(s)

question 16

Multiple Choice

Use the graph below to answer the question(s) .
-In the ABC Inventory Matrix,inventory in area Z suggests

• A)under-stocked A and B items.
• B)under-stocked B and C items.
• C)overstocked A and B items.
• D)over-stocked B and C items.
• E)inventory matches sales.

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Definitions:

Short-Term Funds

Short-Term Funds are investment vehicles that invest in securities with short maturity periods, usually less than one year, providing liquidity and income.

Trade Credit

A type of commercial financing in which a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations to finance their immediate cash flow needs.

Spontaneous Financing

Refers to funding that occurs naturally as a firm's operations grow, such as trade credit that increases with sales.