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Which of the following statement is false with respect to ABC analysis?
  • a)
    ‘A’ includes the items whose annual consumption value is the highest
  • b)
    ‘B’ includes the items with a lower consumption value
  • c)
    ABC analysis can help you control you inventory better
  • d)
    All of the above
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of the following statement is false with respect to ABC analysis...
ABC analysis is a technique used for inventory management and categorizes items into three categories based on their value and importance.
b) It helps in identifying the items that contribute the most to the overall inventory value and should be given more attention.
c) It is also known as Pareto analysis.
d) It is only applicable for companies that sell physical products.
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Community Answer
Which of the following statement is false with respect to ABC analysis...
ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
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