ABC analysis requires that inventory be classified according to:

Question

Quizplus · Accepted Answer

ABC analysis is a technique to classify inventory based on their annual dollar usage or value. It helps in identifying the inventory items that contribute the most to the overall inventory cost and prioritizing them for better management. Therefore, option B is the correct choice. The other options, namely alphabetical order by item name, activity-based costs, and due date, are not relevant to ABC analysis.

ABC Analysis Requires That Inventory Be Classified According To