Which inventory technique is most useful when a business has inventory that varies greatly in value?...
- Average cost
- LIFO
- ABC
- FIFO
Homework Answers
Answer:
When a business has inventory that varies greatly in value, then the inventory technique that is the most useful will be:
ABC
The ABC inventory analysis is done by by classifying inventory into
three groups based on turnover and inventory value. The group A
contains the items that are high in value and small quantity
whereas group B contains items of average value and quantity and
the third group C contains items that are low in value and high in
quantity.
Add Answer to:
Which inventory technique is most useful when a business has inventory that varies greatly in value?...
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any help with this is greatly appreciated
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