All EXCEPT which of the following statements about ABC analysis are true?
A)In ABC analysis,inventory may be categorized by measures other than dollar volume.
B)ABC analysis categorizes on-hand inventory into three groups based on annual dollar volume.
C)ABC analysis is an application of the Pareto principle.
D)ABC analysis suggests that all items require the same high degree of control.
E)ABC analysis suggests that there are the critical few and the trivial many inventory items.

Question

Quizplus · Accepted Answer

This statement is false as ABC analysis suggests different levels of control for different inventory items based on their categorization. The critical few items require high degree of control while the trivial many items may require less control. All other statements are true.

All EXCEPT Which of the Following Statements About ABC Analysis