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

question 22

Multiple Choice

In the A-B-C classification system, items which account for sixty percent of the total dollar-volume for few 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:

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business.

Business for Profit

Organizations that operate with the primary goal of earning financial returns for their owners or shareholders.

Limited Liability Corporation

A business structure that offers its owners protection from personal liability for the debts of the company, while allowing them to enjoy the tax and operational benefits of a partnership.

Sole Proprietorship

A simple business structure where a single individual owns, manages, and is responsible for all aspects of the business, including liabilities.