ABC Analysis Divides On-Hand Inventory into Three Classes, Generally Based

question 110

Multiple Choice

ABC analysis divides on-hand inventory into three classes, generally based upon

• A) item quality
• B) unit price
• C) the number of units on hand
• D) annual demand
• E) annual dollar volume

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Definitions:

Car Salesman

A person who sells new or used vehicles at a dealership.

Margins

The difference between the selling price of a good or service and its cost of production, often expressed as a percentage of the selling price, indicative of profitability.

Company Owned Store

A retail establishment directly controlled and operated by the corporation that owns the brand, as opposed to a franchise.

Manager

An individual responsible for controlling or administering all or part of a company or similar organization.