Which of the Following Is True of the 80-20 Rule

question 67

Multiple Choice

Which of the following is true of the 80-20 rule?

• A) A company should order 80 percent of its supplies from one supplier, and the remaining 20 percent from other suppliers.
• B) 80 percent of a company's income comes from 20 percent of its products.
• C) The cost of raw materials should be about 80 percent of the cost of the finished product, and the cost of manufacturing should be about 20 percent of the cost of the finished product.
• D) A company should schedule 80 percent of its production during 20 percent of the work week.