Table 14.4
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 14.4)
A)Items 4 and 6
B)Items 6 and 8
C)Items 1,7,and 9
D)Items 1 and 3

Question

Table 14.4
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 14.4)
A)Items 4 and 6 
B)Items 6 and 8 
C)Items 1,7,and 9 
D)Items 1 and 3

Quizplus · Accepted Answer

According to the ABC system of inventory control, C category items are those that have lower dollar value and/or are less critical for the business operations. Based on the data provided in Table 14.4, Items 1, 7, and 9 have the lowest average unit cost, indicating that they have lower dollar value compared to other items. Therefore, they belong in the C category.

Table 14.4 Bowring Ball Bearings Has 10 Different Items in Its Inventory.The