Which of the Following Is an Advantage of the ABC

question 12

Multiple Choice

Which of the following is an advantage of the ABC system of inventory control?

• A) Recognizes that stock outs on low margin items may be as critical for customers as stock outs on high margin items.
• B) Prevents high demand items from being out of stock.
• C) Smoothes demand and, therefore, inventory withdrawal.
• D) Relates the opportunity costs due to poor inventory management to the cost of inventory control.
• E) Allows management to focus more equally on higher value inventory as well as on lower value items.

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Definitions:

Food Allergies

Immune system reactions to certain foods that cause symptoms ranging from mild to severe.

Immigrated

Moved into a country or region from one's country of origin to live there permanently.

Health History

A record of a person's medical background, including past illnesses, surgeries, allergies, and current medications.

Sharp, Burning Pain

A description of pain that feels intense and similar to a burn, often indicating nerve involvement.