Which of the Following Statements About ABC Analysis Is False

question 87

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) In ABC analysis, "B" items are not as tightly controlled as "A" items.

---

Definitions:

Federal Tax Revenue

Federal Tax Revenue is the income collected by the government through various forms of taxes, including income tax, corporate tax, and other taxes, funding government operations and services.

Taxpayers

Taxpayers are individuals or entities that are obligated to make payments to governmental authorities, these payments are typically based on the earnings or property owned by the taxpayer.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, leading to high unemployment, deflation, and significant financial distress globally.

World War II

A global conflict that took place between 1939 and 1945, involving most of the world's nations.