Using the ABC classification system for inventory, which of the following is a true statement?
A) The C items are of moderate dollar volume.
B) You should allocate about 50 percent of the dollar volume to B items.
C) The A items are of low dollar volume.
D) The A items are of high dollar volume.
E) Inexpensive and low usage items are classified as C no matter how critical.

Question

Quizplus · Accepted Answer

The ABC classification system for inventory categorizes items into three groups based on their dollar value: A items are high-value items, B items are moderate-value items, and C items are low-value items. Therefore, D is the correct option as it states that the A items are of high dollar volume. Options A, B, and E are incorrect as they provide contradictory statements to the definition of the ABC classification system.

Using the ABC Classification System for Inventory, Which of the Following