Which of the following statements concerning ABC analysis is false?
A)Class B items typically account for 20 percent of the company's business in dollars.
B)There are typically less class A items in stock than class B.
C)Class C items typically account for 70 percent of the company's inventory items.
D)Class C items tend to have more complex inventory policies than Class B items.
E)Class B items typically account for 20 percent of the company's items in inventory.

Question

Quizplus · Accepted Answer

Class C items are generally lower value items with low demand, and therefore, they have simpler inventory policies than Class B items.

Which of the Following Statements Concerning ABC Analysis Is False