The correct answer is: C. Inventory control.
VED analysis is a technique used to classify items in an inventory based on their value, volume, and criticality. This information can then be used to develop inventory control policies that are appropriate for each type of item.
- Value: This refers to the cost of the item. Items with a high value should be given more attention than items with a low value.
- Volume: This refers to the number of items that are used. Items with a high volume should be given more attention than items with a low volume.
- Criticality: This refers to the importance of the item. Items that are critical to the operation of the business should be given more attention than items that are not critical.
VED analysis can be used to develop inventory control policies that are appropriate for each type of item. For example, items that are high in value and volume may be kept in stock at all times, while items that are low in value and volume may be ordered only when needed.
Ratio analysis is a technique used to compare the financial performance of a company to its own past performance or to the performance of other companies. It is used to identify areas where the company is doing well and areas where it needs to improve.
Budgetary control is a process used to ensure that a company’s spending stays within its budget. It involves setting budgets for different departments and then tracking actual spending against those budgets.
Cash budgeting is a process used to forecast a company’s cash flow. It involves estimating the company’s income and expenses over a period of time and then comparing those estimates to the company’s current cash balance.