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.

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Definitions:

Manufacturing Firm

A company that produces goods or products using raw materials and various processes such as assembly or fabrication.

Alignment Of Strategies

The process of ensuring all aspects of an organization's strategies are coordinated and supportive of the organization's goals and objectives.

Performance Management

A systematic process by which an organization involves its employees in improving organizational effectiveness in the accomplishment of the organization's mission and goals.

Functional Fit

A measure of how well a particular strategy, process, or system suits the operational needs of an organization.