ABC Analysis Categorizes Purchases or Inventory into Different Groups, Normally

question 19

True/False

ABC analysis categorizes purchases or inventory into different groups, normally based on the value or impact on the profitability of the organization.

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Definitions:

Objectively Observe

The process of gathering information or data through observation in a way that is not influenced by personal feelings or opinions.

Causal

Relating to cause and effect; implying or concerned with the relationship between causes and their outcomes.

Control Variable

In research, a variable that is held constant to test the relative impact of an independent variable on a dependent variable.

Association

A connection or relationship between two or more variables, where changes in one variable correspond to changes in another.