Table 15.4
Bowring Ball Bearings has 10 different items in its inventory. The average number of units held in inventory and the average unit cost are listed for each item. The firm uses an ABC system of inventory control
-Inventory items that belong in the C category include ________. (See Table 15.4)
A) Items 4 and 6
B) Items 1, 6, and 7
C) Items 1, 3, and 9
D) Items 1 and 7

Question

Table 15.4
Bowring Ball Bearings has 10 different items in its inventory. The average number of units held in inventory and the average unit cost are listed for each item. The firm uses an ABC system of inventory control 
-Inventory items that belong in the C category include ________. (See Table 15.4)
A) Items 4 and 6 
B) Items 1, 6, and 7 
C) Items 1, 3, and 9 
D) Items 1 and 7

Quizplus · Accepted Answer

According to the ABC system of inventory control, the C category includes items with lower usage and lower value. Looking at the table, we can see that items 1, 3, and 9 have lower average unit costs compared to the other items, indicating that they may have lower value. Additionally, their average number of units held in inventory is relatively low compared to the other items, which suggests that they may have lower usage. Therefore, items 1, 3, and 9 belong in the C category.

Table 15.4 Bowring Ball Bearings Has 10 Different Items in Its Inventory