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

The statement "ABC analysis suggests that all items require the same high degree of control" is not true. ABC analysis suggests that inventory items may require different levels of control based on their categorization into the three groups.

All EXCEPT Which of the Following Statements About ABC Analysis