"C" Items,in an ABC Analysis

question 42

Multiple Choice

"C" items,in an ABC analysis:

• A)are those items that account for a moderate dollar usage volume.
• B)are those that are low-cost and high-volume by nature.
• C)do not require detailed record keeping or inventory control.
• D)should be tracked with analytical tools and frequent counts.

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Definitions:

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.

Externalities

Costs or benefits that affect parties who did not choose to incur that cost or benefit, often leading to market failure if unaddressed.

Moral Hazard

A situation in which one party engages in risky behavior or lacks incentive to guard against risk because another party bears the consequences.

Moral Hazard

The situation in which one party can take risks because they know that they will not have to bear the full consequences of their actions.