Which of the Following Statements About ABC Analysis Is False

question 16

Multiple Choice

Which of the following statements about ABC analysis is false?

• A) ABC analysis is based on the presumption that all inventory items must be tightly controlled.
• B) ABC analysis is based on the well-known Pareto principle.
• C) In ABC analysis, C category items have minimal monitoring and wider latitude in record keeping accuracy.
• D) All of the above statements are true.

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Definitions:

Unemployment Compensation Taxes

Taxes imposed on employers that fund unemployment insurance benefits for laid-off workers.

Form W-2

A tax form used in the United States to report wages paid to employees and the taxes withheld from them.

Withholding Allowance Certificate

A withholding allowance certificate is a tax form that an employee fills out to indicate their tax situation to the employer, used to calculate the amount of income tax to withhold from the employee's paycheck.

Individual Income Tax

A tax levied on the income of individuals, including wages, salaries, and investment returns.