Which of the following statements is True of the ABC analysis?
A) It compares actual and planned sales to determine the quantity of merchandise needed.
B) It uses a weighted-average score for each vendor.
C) The A items account for 10 percent of the SKUs and 20 percent of sales.
D) The SKUs in a merchandise category are rank-ordered by several performance measures.
E) The C items account for 65 percent of SKUs and contribute to 70 percent of sales.

Question

Quizplus · Accepted Answer

In an ABC analysis, the SKUs in a merchandise category are rank-ordered by several performance measures, such as sales, gross margin, inventory turnover, and GMROI.

Which of the Following Statements Is True of the ABC