The ABC method of inventory management is founded on the notion that
A) some inputs are more valuable or critical to a firm's operations than others.
B) inventory costs should be cut to an absolute minimum by reducing inventory on hand.
C) a firm should know its economic order quantity at all times.
D) the cost of placing an order is a fixed cost.

Question

Quizplus · Accepted Answer

The ABC method of inventory management focuses on prioritizing inventory based on the value or criticality of the inputs to a firm's operations. This allows for more efficient allocation of resources and better management of inventory levels. The other options are not necessarily foundational principles of the ABC method.

The ABC Method of Inventory Management Is Founded on the Notion