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 6 and 8
C) Items 1, 7, and 9
D) Items 1 and 3

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 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, items that belong in the C category are those that have a lower annual dollar usage value and are typically easier to obtain. Based on the information provided in Table 15.4, items 1, 7, and 9 have lower average unit costs and lower average units held, indicating they have a lower overall dollar usage value compared to the other inventory items. Therefore, they belong in the C category.

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