Which of the following statement is correct?
A)Items in the A classification should be controlled under a perpetual inventory system with as much detail as necessary.
B)Control of B items should rely more on periodic control systems and basic analytical tools such as EOQ and reorder point analysis.
C)C items typically constitute a minor proportion of the small firm's inventory value and,as a result,require the least effort and expense to control.
D)All of the above

Question

Quizplus · Accepted Answer

All three statements are correct. 
A) A items are high-value items and require the most detailed control, which can be best achieved through a perpetual inventory system.
B) B items are lower-value items, and periodic control systems and analytical tools like EOQ and reorder point analysis are sufficient to control them.
C) C items are minor in value and, therefore, require the least effort and expense to control.

Which of the Following Statement Is Correct