Which of the Following Statements Is TRUE

question 76

Multiple Choice

Which of the following statements is TRUE?

• A) Inventory is any physical asset held for future use or sale.
• B) When using ABC analysis, C items require close control by operations managers as they account for a large dollar value but a relatively small percentage of total items.
• C) Dependent demand is directly related to the demand of other stock-keeping units (SKUs) and can be calculated without needing to be forecasted.
• D) Stockouts occur in a fixed-quantity system (FQS) whenever the lead-time demand exceeds the replenishment level (M).

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Definitions:

Provisional Dissolution

involves a temporary legal dissolution or suspension of an entity or agreement, pending a final decision or condition fulfillment.

Partner

In the context of business, a partner refers to a member of a partnership or firm who shares in the profits and losses and is jointly and severally liable for the partnership's debts.

Spain

A country located in southwestern Europe on the Iberian Peninsula, known for its rich history, culture, and contributions to art and science.

Full Dissolution

The complete termination or disbanding of an entity, such as a corporation, partnership, or marriage, often involving the dispersal of assets.