Question

Inventory records show the following:

Series Unit Cost Count
Q $1,751.34 6
R $462.00 22
S $88.44 63
T $382.73 14
U $96.42 24
V $38.04 51
W $34.23 17

Use Table 1 to identify the best statement.

A. Items in series V and Q fall in the same category of an ABC analysis.
B. Items in series W and S fall in the same category of an ABC analysis.
C. Items in series W and Q fall in the same category of an ABC analysis.
D. Items in series S and V should be in the Class B of an ABC analysis.

Answer 1

None of the statements provided accurately reflect the relationship between the series based on an ABC analysis.

Step-by-step explanation:

Based on the inventory records provided, we can compare the unit costs and counts of each series to determine if they fall in the same category of an ABC analysis. ABC analysis categorizes items based on their value and importance:

1. Items in series V and Q have different unit costs and counts, so they do not fall in the same category of an ABC analysis. Therefore, option A is incorrect.
2. Items in series W and S have different unit costs but similar counts, so they do not fall in the same category of an ABC analysis. Therefore, option B is incorrect.
3. Items in series W and Q have different unit costs and counts, so they do not fall in the same category of an ABC analysis. Therefore, option C is incorrect.
4. Items in series S and V have different unit costs and counts, so they do not fall in the same category of an ABC analysis. Therefore, option D is incorrect.

None of the statements provided accurately reflect the relationship between the series based on an ABC analysis.