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 business in dollars.

Question

Quizplus · Accepted Answer

Class C items are typically lower value and lower volume items that do not require complex inventory policies. Class B items are moderate value and moderate volume items that require some level of inventory monitoring and control. Therefore, statement D is false as it suggests that Class C items have more complex inventory policies than Class B items.

Which of the Following Statements Concerning ABC Analysis Is False