The ABC approach to inventory management is based on the concept that:

Which one of the following inventory items is probably the least liquid?    A.  plywood held in inventory by a home builder B.  a wheel barrow held in inventory by a garden center C.  a partially assembled interior for a new vehicle D.  a set of tires owned by an automobile manufacturer E.  a toy owned by a retail toy store Refer to section 20.7

47.	Which one of the following inventory items is probably the most liquid?    A.  a custom made set of kitchen cabinets B.  metal cabinets for dishwashers C.  wheat stored in a grain silo D.  a customized drilling press E.  a partially built modular home Refer to section 20.7

48.	Which one of the following inventory-related costs is considered a shortage cost?    A.  storage costs B.  insurance cost C.  cost of safety reserves D.  obsolescence cost E.  opportunity cost of capital used for inventory purchases Refer to section 20.7

49.

The ABC approach to inventory management is based on the concept that:    A.  inventory should arrive just in time to be used. B.  the inventory period should be constant for all inventory items. C.  basic inventory items that are essential to production and also inexpensive should be ordered in small quantities only. D.  a small percentage of the inventory items probably represents a large percentage of the inventory cost. E.  one-third of a year's inventory need should be on hand, another third should be on order, and the last third should not be ordered yet. Refer to section 20.8