The method for stocking inventory in which each supply item is categorized as belonging to one of three groups, largely based on costs, is called the ABC Inventory Method.

Question

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The ABC Inventory Method classifies inventory into three categories (A, B, and C) based on their importance, which is often determined by the item's cost or value, with 'A' being the most valuable and 'C' being the least.

The Method for Stocking Inventory in Which Each Supply Item