ABC Inventory Classification Schemes Divide Inventory Items into Three Groupings

question 65

Multiple Choice

ABC inventory classification schemes divide inventory items into three groupings. What are these groupings usually based upon?

• A) Unit cost
• B) Lead time
• C) Criticality
• D) Weight
• E) Dollar volume

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Definitions:

Brand of Shoes

A specific make or line of footwear identified by a unique name or symbol, often associated with certain quality, style, or prestige.

Elastic

Refers to the responsiveness of the quantity demanded or supplied of a product to changes in its price.

Decreasing Prices

A situation where the cost of goods or services is becoming lower over time.

Revenue

The total amount of money received by a company for goods sold or services provided during a specific period.