In ABC Inventory Analysis, Which of the Following Is TRUE

question 62

Multiple Choice

In ABC inventory analysis, which of the following is TRUE of class C items?

• A) Close control of Class C items (more than of class A or class B items) is required.
• B) Class C items are critical items that must be monitored with a fixed-period system as they have low unit costs and a high volume.
• C) Class C items make up a lower percentage of total dollar value than either class A or class B items.
• D) Class C items make up for 10 to 20 percent of inventory items and 60 to 80 percent of the total dollar usage.

Recognize the importance of expert and referent power in influencing others.

Describe the relationship between power, authority, and influence.

Understand the concept and significance of the zone of indifference.

Comprehend the effects of coercive power on employee behavior and performance.

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Definitions:

Banks

Financial institutions licensed to receive deposits and make loans. They also offer various other financial services such as wealth management, currency exchange, and safe deposit boxes.

Thrifts

Financial institutions that primarily accept savings deposits and make mortgage loans, including savings and loan associations, savings banks, and credit unions.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets, such as economic changes or natural disasters.

Purchasing Power Risk

The risk that the value of money will decrease over time due to inflation, affecting the real value of investments and savings.