What option should you select if you need to track the quantity on hand and the value of an item in Xero?

To effectively track both the quantity on hand and the value of an item in Xero, selecting the option that specifies tracking the item is essential. When you choose to track an item, it allows Xero to maintain detailed records of inventory levels and associated costs. This function is crucial for businesses to manage their stock effectively, understand the total value of inventory, and ensure that they can meet customer demand without overstocking.

This option ensures that you can see real-time updates regarding how much of the item is available and its current value in the context of your overall inventory and financial reporting. It integrates inventory management directly into your accounting system, facilitating informed business decisions.

The other options do not pertain to tracking inventory levels or item values in the same comprehensive manner. For instance, simply monitoring project expenses or assigning items to projects focuses more on project management rather than inventory management. Therefore, the most appropriate choice for tracking quantity and value in Xero is the one that explicitly states it is for tracking the item.