In the Context of ABC Inventory Analysis, Which of the Following

question 10

Multiple Choice

In the context of ABC inventory analysis, which of the following statements is true of class A items

• A) They require close control by operations managers.
• B) They comprise less than 30 percent of the total dollar usage.
• C) They can be managed using automated computer systems.
• D) They account for more than 50 percent of inventory items.

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Definitions:

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the actual profit earned during a specific period.

Interest Expense

The expense an entity faces over time for borrowing funds.