The dollar usage volume of an item is how the importance of the item to inventory is measured in an ABC inventory system.

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Quizplus · Accepted Answer

The dollar usage volume of an item is indeed used to measure the importance of the item to inventory in an ABC inventory system. This volume is determined by multiplying the item's cost by its usage rate, and is used to categorize items into three groups based on their level of importance to the business. Group A items have the highest dollar usage volume and are therefore considered the most critical, while Group C items have the lowest dollar usage volume and are considered the least critical.

The Dollar Usage Volume of an Item Is How the Importance