When Using Pareto Analysis, a Frequency Chart Is Constructed Showing

question 89

True/False

When using Pareto analysis, a frequency chart is constructed showing the number of occurrences in ascending order.

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Definitions:

Perpetual Inventory System

A method of inventory management where updates are made continuously to record sales and purchases.

Credit Memo

A document issued by a seller that reduces the amount owed by a buyer, typically due to a return or rebate.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer assumes responsibility for the goods and their transportation costs from the point of departure.

Insurance in Transit

Insurance in transit covers risk to goods and materials while they are being transported from one location to another.