In the ABC Inventory Classification Approach, Class a Items Account

question 21

Multiple Choice

In the ABC Inventory Classification approach, Class A items account for approximately what percentage of items?

• A) 10%
• B) 20%
• C) 50%
• D) 80%

---

Definitions:

Payout Ratio

A financial metric indicating the percentage of earnings a company pays to its shareholders in the form of dividends.

Earnings Distributed

The portion of a company's profit paid out to shareholders, typically in the form of dividends.

Intraperiod Tax Allocation

This accounting technique involves allocating income tax expense or benefit among different components of comprehensive income within a single reporting period.

Continuing Operations

The segments or activities of a business that are expected to continue for the foreseeable future and are not classified as discontinued.