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

question 44

Multiple Choice

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

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

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Definitions:

Inferential Statistics

The branch of statistics that allows one to make predictions or inferences about a population based on a sample of data taken from that population.

Normal Distribution

A statistical distribution where data is symmetrically distributed around the mean, forming a bell-shaped curve.

Random Sampling

Sampling in which every member of a population has an equal chance to be selected and in which selection is determined by “luck of the draw” rather than a decision by the researcher.

Degrees

Units of measurement for angles in a circle or for temperature; in the context of education, it refers to academic qualifications.