1. Activity-based costing is a method of allocating overhead often used with ___________.

A. economic order quantities

B. alternate based capital

C. automation

D. an A-B-C inventory approach

E. lean systems

2. ABC analysis is an item classification system which (indicate the exception below):

A. can be used as guide for allocating time and attention in inventory management.

B. identifies the A items as primarily materials and parts that account for the highest percentage of annual dollar value.

C. can be used as a guide for establishing controls in inventory management.

D. would guide inventory management to concentrate their time and effort on supply type items.

E. none of the above is an exception.