Using the ABC classification system for inventory,which of the following is a true statement?
A)The "C" items are of moderate dollar value per unit
B)You should allocate about 15 % of the dollar volume to "B" items
C)The "A" items are of low dollar value per unit
D)The "A" items are of high dollar value per unit
E)Inexpensive and low usage items are classified as "C" no matter how critical

Question

Quizplus · Accepted Answer

The ABC classification system categorizes items into three groups based on their dollar value per unit. "A" items are high dollar value per unit, "B" items are moderate, and "C" items are low. Therefore, D is the correct choice as "A" items are of high dollar value per unit. Option A is incorrect as it describes "B" items, Option B is incorrect as the percentage allocation to "B" items can vary depending on the situation, Option C is incorrect as it describes "C" items, and Option E is incorrect as it is only partially true - inexpensive and low usage items are usually classified as "C," but their criticality can also factor into the classification.

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