The ABC method of inventory management is founded on the notion that
A)some inputs are more valuable or more critical to the firm's operations than others.
B)inventory costs should be cut to an absolute minimum by reducing inventory on hand.
C)a firm should know its economic order quantity at all times.
D)the cost of placing an order is a fixed cost.

Question

Quizplus · Accepted Answer

The ABC method categorizes inventory items based on their value or criticality to the firm's operations. This allows the firm to prioritize its inventory management efforts and allocate resources accordingly.

The ABC Method of Inventory Management Is Founded on the Notion