ABC Classification of Materials Is Most Often Done in Terms

question 109

True/False

ABC classification of materials is most often done in terms of annual dollar volume.This identifies the most important SKUs as A-class.Increasing numbers of organizations try to prepare for shortage situations by overstocking the C-class of items.

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Definitions:

Par Value

The nominal or face value of a stock or bond as stated by the issuer, which may differ from its market value.

Retirement

The act of leaving one's job and ceasing to work, typically upon reaching a predetermined age.

Gain or Loss

A financial result that occurs when the selling price of an asset differs from its initial purchase cost.

Callable Bonds

Securities that the issuer has the option to repurchase before they reach their due date, for a predetermined amount.