Which of the following statements about ABC analysis is False? A) ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. B) In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive regular review by major decision makers. C) In ABC analysis, "C" Items have minimal records, periodic review, and simple controls. D) ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. E) All of the above statements are true.

Question

Quizplus · Accepted Answer

Statement D is false because ABC analysis emphasizes controlling the most important items, rather than all items, to save costs. The other statements are true.

Which of the Following Statements About ABC Analysis Is False