Which of the following statements about ABC analysis is false?
A) ABC analysis is based on the presumption that all inventory items must be tightly controlled.
B) ABC analysis is based on the well-known Pareto principle.
C) In ABC analysis, C category items have minimal monitoring and wider latitude in record keeping accuracy.
D) All of the above statements are true.

Question

Quizplus · Accepted Answer

ABC analysis operates on the principle that not all inventory items require the same level of control. It categorizes items into three classes (A, B, and C) with A items being the most tightly controlled and C the least, contradicting the statement in option A.

Which of the Following Statements About ABC Analysis Is False