Classify the Following Inventory Items as Either A,B,or C Items

question 38

Multiple Choice

Classify the following inventory items as either A,B,or C items according to the ABC analysis method:? $\begin{array}{|l|r|r|l|l|}\hline {\text { Item \# }} & {\text { Annual Sales }} & \text { Unit Cost } & \begin{array}{l}\text { Current } \\\text { Inventory } \\\text { Value } \$\end{array} & \text { Classification } \\\hline{ 1 } & 130 \text { units } & \$ 4.00 & & \\\hline 2 & 400 \text { units } & 15.30 & & \\\hline 3 & 25 \text { units } & 17.00 & & \\\hline 4 & 1320 \text { units } & 1.25 & & \\\hline 5 & 90 \text { units } & 2.10 & & \\\hline\end{array}$

• A)item 1 (B), item 2 (A), item 3 (A), item 4 (C), item 5 (C)
• B)item 1 (C), item 2 (B), item 3 (C), item 4 (A), item 5 (C)
• C)item 1 (A), item 2 (B), item 3 (C), item 4 (A), item 5 (B)
• D)item 1 (B), item 2 (C), item 3 (B), item 4 (C), item 5 (A)
• E)item 1 (C), item 2 (A), item 3 (C), item 4 (B), item 5 (C)

Calculate optimal pricing strategies for maximizing profits.

Explain the role of consumer surplus and producer surplus in pricing decisions.

Understand the economic rationale behind offering discounts to specific segments.

Recognize the significance of preventing arbitrage in price discrimination strategies.

---

Definitions:

Team Mates

Individuals who are part of the same group or team, working together towards a common goal.

Socially Responsible

Referring to practices that promote ethical behavior and positive contributions to the larger community or environment by individuals or corporations.

Fair And Just

The principle of treating individuals equitably, making unbiased decisions, and ensuring impartiality and fairness in actions, policies, and procedures.

Senior Managers

High-level executives who are responsible for overseeing the operations and strategic direction of their organization's various departments.