The ABC Inventory Control System Causes Managers To

question 78

Multiple Choice

The ABC inventory control system causes managers to:

• A)not keep a large safety stock on "A" items because it ties up too much cash.
• B)keep a large safety stock on "C" items because they generate the greatest revenue.
• C)keep a large safety stock on "A" items.
• D)keep small levels of safety stock for "C" items because they are of relatively little value.

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Definitions:

Estopped

Estopped refers to a legal principle that prevents a person from arguing something contrary to a claim they previously made or agreed to by their actions or words.

Requisite Authority

The necessary or required power, permission, or jurisdiction to perform an action or enforce a policy.

Power of Attorney

A legal document that allows one person to act on another's behalf in legal matters or financial transactions.

Representative Capacity

This refers to acting on behalf of another person or entity in a legal or official capacity, such as an attorney representing a client.