"A" Products in the ABC Inventory Method Are Those Products

question 29

Multiple Choice

"A" products in the ABC inventory method are those products:

• A)whose order cost and holding cost are equal.
• B)kept on hand as backup supply to ensure against sudden increase in usage.
• C)whose dollar value accounts for 5%-10% of the inventory value.
• D)that the managers should monitor and control very closely.

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Definitions:

Wind Power System

A technology setup that converts wind energy into electrical power through the use of turbines, contributing to renewable energy sources.

Useful Energy Yield

The amount of usable energy obtained from a process, after accounting for energy losses.

Solar Power Plant

A facility that converts sunlight into electricity using photovoltaic panels or mirrors to focus solar radiation.

Nuclear Plant

A facility used for generating electricity by converting the heat released from nuclear reactions into electrical power, typically through the process of nuclear fission.