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:

Technology Firms

Companies that focus on the development, production, and marketing of electronic devices, software, or services.

Utilization

The process of using resources or capabilities effectively and efficiently.

Market Position

The standing of a company or its products in the eyes of customers relative to its competitors, often measured by market share, reputation, and customer preference.