A-B-C Analysis Refers To

question 6

Multiple Choice

A-B-C analysis refers to:

• A) an inventory management system which evaluates the efficiency with which products A, B, and C are managed.
• B) Activity Based Cost allocation in a retail store.
• C) management's analysis of Active Buying Customs in their industry.
• D) an inventory analysis system that tracks Alternative Buying Choices.

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Definitions:

Lockbox System

A service offered by banks to companies for the receipt of payment from customers, directly into a bank's post office box, to minimize the time it takes to deposit checks and access funds.

Collection Time

The average period it takes for a business to collect payments owed by its customers.

Check Clearing

The process of transferring funds from the bank on which a check is drawn to the bank where it was deposited.

Transaction Motive

The need to hold cash for the purpose of conducting day-to-day business transactions.