In ABC Inventory Analysis, Which of the Following Is True

question 78

Multiple Choice

In ABC inventory analysis, which of the following is true for "C" items?

• A)Tighter control of "C" items (than for "A" or "B" items) is appropriate.
• B)"C" items are critical items that must be monitored with a fixed period system.
• C)"C" items make up a lower percentage of total inventory value ($) than either "A" or "B" items.
• D)"C" items make up 10-20 percent of inventory items.

---

Definitions:

Principal

In finance, the principal is the initial amount of a loan or the amount of an investment excluding any interest or profit earned.

Agency by Ratification

An arrangement where a principal formally approves an act performed by someone who did not have the authority to act as their agent at the time of the act.

Ratification Requirements

Key provisions that must be met for an agreement or treaty to be officially approved and adopted by the involved parties.

Ratification to Be Effective

The process through which formal validation or approval is given, making an agreement officially valid.