In ABC method of inventory,A refers to:
A)items account for a high dollar usage volume.
B)items account for a moderate dollar usage volume.
C)items account for low dollar usage volume.
D)None of the above

Question

Quizplus · Accepted Answer

The ABC method of inventory classifies items based on their dollar usage volume. Category A items account for a high dollar usage volume, typically around 80% of the total inventory value. Category B items account for a moderate dollar usage volume, usually around 15% of the total inventory value. Category C items account for low dollar usage volume, generally around 5% of the total inventory value. Therefore, A refers to items that account for a high dollar usage volume.

In ABC Method of Inventory,A Refers To