Inventory classifications for an ABC analysis are not user defined. In other words, all ABC classifications must specify that A items must constitute 80% of the value and 20% of the items; B items must constitute 15% of the value and 30% of the items; and C items must constitute 5% of the value and 50% of the items  True False

ABC analysis is based upon the principle that  A. all items in inventory must be monitored very closely  B. there are usually a few critical items, and many items which are less critical  C. an item is critical if its usage is high  D. an item is critical if its unit price is high

ABC Company has kept ten products in its warehouse. Its inventory database consists of ‘Product ID’, ‘Unit Price (in dollars)’ and ‘Quantity (in units)’. For managing its inventory effectively, the Company will classify its inventory based on the investment of an individual product. Which of the following approaches are correct?1) Use of ABC Analysis2) Use of Matrix Analysis3) Based on the ‘Unit Price (in dollars)’, calculation of the total inventory amount of each product in the ‘Quantity (in units)’ column. Then arranging them in descending order according to the amount of goods accounted for and calculating the cumulative percentage of each product. Finally, dividing the products into A, B, C categories.4) Based on the ‘Unit Price (in dollars)’, calculating the total inventory amount of each product in the ‘Quantity (in units)’ column. Then arranging them in descending order according to the amount of product accounted for and calculating the proportion of each product. Finally, dividing the products into A, B, C categories.Question 20Select one:a.1,3b.2,3c.3,4d.1,2

ABC inventory assumes that a company’s inventory is ____ equal and _______________ the same level of ____.a.fully, does demand approximately, costsb.counted, requires control for, profitc.not, does not need, orderingd.not, does not need, control

Inventory is classified as

What does category ‘A’ in the ABC analysis means?It serves as small transaction that are vital for overall profit but does not matter muchIt serves as your most valuable product that contributes the most to overall profit