When Using an ABC Inventory Analysis, the Inventory Items That

question 54

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 C 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:

AMT Purposes

Refers to the specific calculations and adjustments applied to determine the Alternative Minimum Tax owed by an individual or corporation.

Standard Deduction

A fixed dollar amount that reduces the income on which you are taxed, varying by filing status, and used instead of itemizing deductions.

Positive Adjustment

An increase in the amount of reported income or expense, resulting in a higher taxable income.

AMTI

Alternative Minimum Taxable Income, which is calculated to ensure that taxpayers with large amounts of deductions, exemptions, and exclusions still pay a minimum amount of tax.