Which of the Following Would Refer to the 80/20 Rule

question 12

Multiple Choice

Which of the following would refer to the 80/20 rule when applied to the ABC inventory control system?

• A) 80 percent of the items account for 20 percent of the groups.
• B) 20 percent of the items account for 80 percent of the tasks.
• C) 80 percent of the unit cost accounts for 20 percent of the items.
• D) 80 percent of the total annual $ usage is accounted for, by 20 percent of the items.
• E) None of these.

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Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money, or the amount a lender charges for the borrowing of money.

Contract Rate

The agreed-upon interest rate specified in a loan or bond agreement.

Market Rate

The current price at which an asset or service can be bought or sold in a given market.

Quoted

The stated price or rate for a financial instrument or commodity in the marketplace.