In the A-B-C Classification System, Items Which Account for About

question 69

Multiple Choice

In the A-B-C classification system, items which account for about 15 percent of the annual dollar value, but which account for a majority of the inventory items, would be classified as

• A)A items.
• B)B items.
• C)C items.
• D)A items plus B items.
• E)B items plus C items.

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Definitions:

Total Carrying Costs

The comprehensive costs associated with holding inventory, including storage, handling, insurance, and taxes.

Credit Score

A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of an individual.

Terms of Sale

The conditions under which a seller will sell and deliver goods to a buyer, detailing payment terms, delivery times, and other conditions of the sale.

Granting Credit

The process of providing a loan or other form of credit to a borrower or customer, often with specific terms and conditions.