Which of the Following Statements About ABC Analysis Is False

question 150

Multiple Choice

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.

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Definitions:

Magnetic Behaviors

The characteristics and responses of materials or systems under the influence of magnetic fields.

Line of Flux

Refers to the path that magnetic flux follows within a magnetic field, indicating the direction and strength of magnetic forces.

Conductor

A material that permits the flow of electrical current, often used for making wires and other components in electrical circuits.

Electro-magnetism

A fundamental branch of physics concerned with the electromagnetic force that occurs between electrically charged particles.