The Inventory Control System Technique That Segregates Inventory into Three

question 30

Multiple Choice

The inventory control system technique that segregates inventory into three groups is called the

• A) economic order quantity model
• B) ABC system
• C) material requirements planning system
• D) just-in-time system

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Definitions:

Cash Dividend

It's a payment made by a company out of its profits to shareholders, distributed in cash, based on the number of shares held.

Expense

An outflow of resources or incurrence of liabilities that result from a company's operations, aimed at generating revenue.

Prior Period Adjustment

A correction of errors in financial statements that were made in previous periods, affecting retained earnings on the balance sheet.

Financial Statements

Official records that detail the financial activities and condition of a business, including income statement, balance sheet, and cash flow statement.