In ABC analysis,the dollar usage value of an item is determined by:
A)its price per unit times its shrinkage rate.
B)a statistical application of the 80/20 rule.
C)POS systems.
D)its cost per unit and its sales volume.

Question

Quizplus · Accepted Answer

The dollar usage value in ABC analysis is determined by multiplying the cost per unit by the sales volume or usage rate of an item. This helps in classifying inventory items based on their importance and value to the organization.

In ABC Analysis,the Dollar Usage Value of an Item Is