Which of the following would refer to the 80/20 rule when applied to the ABC inventory control system?
A) 80 percent of the items account for 20 percent of the groups.
B) 20 percent of the items account for 80 percent of the tasks.
C) 80 percent of the unit cost accounts for 20 percent of the items.
D) 80 percent of the total annual $ usage is accounted for, by 20 percent of the items.
E) None of these.

Question

Quizplus · Accepted Answer

The 80/20 rule states that 80% of the effects are from 20% of the causes. In ABC inventory control system, this rule can be applied to the usage of inventory items. Choice D states that 80% of the total annual $ usage is accounted for, by 20% of the items, which refers to the 80/20 rule in ABC inventory control system. The other choices do not refer to the 80/20 rule in this context.

Which of the Following Would Refer to the 80/20 Rule