7. Which of the following statements about ABC analysis isFALSE? a. ABC analysis is based on the...
Question:
7. Which of the following statements about ABC analysis isFALSE?
a. ABC analysis is based on the presumption that controlling thefew most important items produces the vast majority of inventorysavings.
b. In ABC analysis, "A" items should have tighter physicalinventory control than "B" or "C" items have.
c. ABC analysis is based on the presumption that all items mustbe tightly controlled to produce important cost savings.
d. In ABC analysis, forecasting methods for "C" items may beless sophisticated than for "A" items.
e. Criteria other than annual dollar volume, such as highholding cost or delivery problems, can determine itemclassification in ABC analysis.
10. The lot-for-lot lot-sizing technique is particularlyappropriate when holding costs are low and ordering costs arehigh.
a. True
b. False
11. Given the following bill of material:
If the demand for product A is 100 units, what will be the grossrequirement for component D? Assume there is a planned orderreceipt for 100 of item C.
a. 700
b. 500
c. 0
d. 3
e. 200
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen