Inventory items that belong in the A category include ________.A. Items 3 and 9.B. Items 1, 6, and 7.C. Items 1 and 7.D. Items 4 and 6. National has 10 different items in its inventory. The average number of units held in inventory andthe average unit cost are listed for each item. The firm uses an ABC system of inventory controlInvty Item Control No.Ave. No. of Units5,0002,000100500Ave. Unit CostP 0.051.502348.5045.00563.50100.0065010,0005,1003,1002070.255.00890.75101,1502.00

The ABC classification of the given inventory item can be done as follows:

Answered: Inventory items that belong in the A…

Business

Operations Management

Inventory items that belong in the A category include

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Inventory items that belong in the A category include ________.

A. Items 3 and 9.

B. Items 1, 6, and 7.

C. Items 1 and 7.

D. Items 4 and 6.

National 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
Invty Item Control No.
Ave. No. of Units
5,000
2,000
100
500
Ave. Unit Cost
P 0.05
1.50
2
3
4
8.50
45.00
5
6
3.50
100.00
650
10,000
5,100
3,100
20
7
0.25
5.00
8
9
0.75
10
1,150
2.00

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