The ABC Approach to Inventory Management Is Based on the Concept

The ABC approach to inventory management is based on the concept that:

A) Inventory should arrive just in time to be used.
B) The inventory period should be constant for all inventory items.
C) Basic inventory items that are essential to production and also inexpensive should be ordered in small quantities only.
D) A small percentage of the inventory items probably represents a large percentage of the inventory cost.
E) One-third of a year's inventory need should be on hand, another third should be in the order process and the last third should not be ordered yet.