In the ABC Inventory Classification, C Items Can Best Be

question 13

Multiple Choice

In the ABC inventory classification, C items can best be described as ________.

• A) expensive
• B) among the most numerous
• C) having a high stockout cost
• D) requiring close attention

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Definitions:

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, reflecting the net cash inflow that would be received if the goods were sold.

Bad Debt Expense

An expense reported on the income statement, representing the estimated amount of receivables that will not be collected.

Maturity Value

The amount that will be paid to the holder of a financial instrument at its maturity date, including both the principal and any accrued interest.

Due Date

The specific date by which an obligation, such as a payment or task, must be completed or fulfilled.