ABC Analysis Is Based Upon the Principle That

question 20

Multiple Choice

ABC analysis is based upon the principle that

• A) all items in inventory must be monitored very closely
• B) there are usually a few critical items, and many items which are less critical
• C) an item is critical if its usage is high
• D) more time should be spent on class "C" items because there are more of them
• E) as with grade distributions in many MBA courses, there should be more medium-level "B" items than either "A" or "C" items

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Definitions:

Evaluation Phase

A stage in a process (such as product development or project management) where the results or outcomes are assessed against predetermined criteria or objectives.

Forecasting

The process of making predictions about future events or trends based on analysis of past and present data.

Promotional Channel Strategy

The planning of how various channels such as advertising, public relations, and digital marketing will be used to communicate a product's value and benefits to consumers.

Channel A

Generally refers to a specific pathway or medium through which goods, information, or services are delivered to end users.