When Using an ABC Inventory Analysis, the Inventory Items That

question 57

Multiple Choice

When using an ABC inventory analysis, the inventory items that make up approximately percent but account for approximately percent of total costs are classified as B items.

• A) 10 -15; 75
• B) 10 -15; 10 -15
• C) 75 -80; 10 -15
• D) 75 -80; 75 -80

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Definitions:

Cash Projections

Estimates of a company's future financial position based on expected cash inflows and outflows over a certain period.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Audit Log

A record that tracks the sequence of activities or changes in a system, often used for security and compliance purposes.

Transaction Journal

A detailed record showing all the financial transactions of a business, used for accounting and auditing purposes.