Which of the Following Statements Is Best

question 28

Multiple Choice

Which of the following statements is best?
I. It is not always practical to expect 100% inventory accuracy on all items.
II. "C" items should be expected to have a higher inventory accuracy than "A" items.
III. Tolerance is the amount of permissible variation between an inventory record and a physical count.

• A) all the above
• B) I and II only
• C) I and III only
• D) II and III only
• E) I only.

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Definitions:

Consumer Sovereignty

The concept that consumers' preferences and decisions dictate the production of goods and services in an economy, emphasizing the power of consumer choice.

Market Economy

An economic system where supply and demand from private enterprise make all the economic decisions.

Economic Profit

The split between entirety of income and the full scope of expenditures, considering both clear and implicit financial obligations.

Production Techniques

Methods and processes used in the creation of goods and services, influenced by technology, labor skills, and resource availability.