ABC analysis divides on-hand inventory into three classes, generally based upon which of the following?
A) item quality
B) unit price
C) the number of units on hand
D) annual demand
E) annual dollar volume

Question

Quizplus · Accepted Answer

ABC analysis divides inventory based on the annual dollar volume of each item, with the highest volume items classified as "A" and the lowest volume items classified as "C".

ABC Analysis Divides On-Hand Inventory into Three Classes, Generally Based