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:

Farm Output

Farm output refers to the total quantity of agricultural products produced by a farm, including crops, livestock, and dairy products.

Inelastic Nature

A characteristic of a good or service for which the quantity demanded or supplied changes by a smaller percentage than the percentage change in price.

Monopolistic Markets

Markets dominated by a single seller, with no close substitutes for the product or service, leading to less competition and higher prices.

Oligopolistic Markets

Markets characterized by a few large producers that have the ability to influence prices, but must consider the actions of their rivals.