Which of the Following Statements Is True of the ABC

question 68

Multiple Choice

Which of the following statements is True of the ABC analysis?

• A) It compares actual and planned sales to determine the quantity of merchandise needed.
• B) It uses a weighted-average score for each vendor.
• C) The A items account for 10 percent of the SKUs and 20 percent of sales.
• D) The SKUs in a merchandise category are rank-ordered by several performance measures.
• E) The C items account for 65 percent of SKUs and contribute to 70 percent of sales.

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Definitions:

Standardization

Involves establishing uniform procedures, criteria, or specifications within organizations to ensure consistency and efficiency.

Coordinating Mechanism

A system or process used to ensure different parts of an organization work together efficiently towards common goals.

Organizational Design

The process of structuring an organization's roles, responsibilities, and systems to achieve its goals effectively and efficiently.

Direct Supervision

A management style where a supervisor is directly involved in the oversight and direction of employees' work on a day-to-day basis.