Question

which inventory technique is most useful when a business has inventory that varies greatly in value?

average cost

fifo

abc

lifo

Explanation:

The ABC inventory technique categorizes inventory into groups (A, B, C) based on value, with A being high - value, B medium - value, and C low - value. This is ideal for businesses with inventory of varying values as it allows focused management on high - value items. Average cost, FIFO, and LIFO are more about cost flow assumptions for inventory with relatively similar - valued items or for cost - of - goods - sold calculations, not for handling varying - value inventory.

Answer:

C. ABC