Bowring Ball Bearings Has 10 Different Items in Its Inventory

question 50

Multiple Choice

Bowring Ball Bearings has 10 different items in its inventory. The average number of units held in inventory and the average unit cost are listed for each item. The firm uses an ABC system of inventory control.
$$\begin{array} { l cc } & \text { Average Number of Units } & \text { Average Unit Cost } \\\hline1 & 5,000 & \$ 0.05 \\2 & 2,000 & 1.50 \\3 & 100 & 8.50 \\4 & 500 & 45.00 \\5 & 650 & 3.50 \\6 & 10,000 & 100.00 \\7 & 5,100 & 0.25 \\8 & 3,100 & 5.00 \\9 & 20 & .75 \\10 & 1,150 & 2.00\end{array}$$
-Inventory items that belong in the C category include________

• A) Items 1 and 7
• B) Items 1, 3, and 9
• C) Items 4 and 6
• D) Items 1, 6, and 7

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Definitions:

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