ABC inventory assumes that a company’s inventory is ____ equal and _______________ the same level of ____.a.fully, does demand approximately, costsb.counted, requires control for, profitc.not, does not need, orderingd.not, does not need, control

Inventory classifications for an ABC analysis are not user defined. In other words, all ABC classifications must specify that A items must constitute 80% of the value and 20% of the items; B items must constitute 15% of the value and 30% of the items; and C items must constitute 5% of the value and 50% of the items  True False

If aggregate demand is less than the level of aggregate output, ___________________.a.inventory investment will be unaffectedb.inventory investment will be positivec.inventory investment will be negatived.insufficient information to determine the level of inventory investmentClear my choice

The cost of inventory to the firm includes all of the following EXCEPT:

Inventory is classified asMultiple choice question.a revenue.a current asset.a current liability.a noncurrent asset.

ABC analysis is based upon the principle that  A. all items in inventory must be monitored very closely  B. there are usually a few critical items, and many items which are less critical  C. an item is critical if its usage is high  D. an item is critical if its unit price is high