"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:

Financial Statement

A written record that conveys the business activities and the financial performance of a company, including the balance sheet, income statement, and cash flow statement.

Account Category

A classification for accounting entries that helps organize financial transaction records, such as assets, liabilities, or expenses.

Income Statement

A financial statement showing a company's revenues, expenses, and profits over a specified period.

Balance Sheet

A summary that encapsulates a business's liabilities, assets, and shareholders' equity at a distinct date.