Using the ABC Classification System for Inventory, Which of the Following

question 86

Multiple Choice

Using the ABC classification system for inventory, which of the following is a true statement?

• A) The C items are of moderate dollar volume.
• B) You should allocate about 50 percent of the dollar volume to B items.
• C) The A items are of low dollar volume.
• D) The A items are of high dollar volume.
• E) Inexpensive and low usage items are classified as C no matter how critical.

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Definitions:

Office Time Gossiping

The act of engaging in informal conversation or rumors about others, typically not work-related, during office hours.

Hours

Units of time equivalent to 60 minutes, often used to measure the duration of work, services, or events.

Grapevine

An informal and unofficial channel of communication within an organization, often characterized by rumors and non-official information.

Informal Communication System

The unofficial and casual manner in which information circulates within an organization, beyond formal channels like memos.