ABC Analysis Uses a Single Criterion to Classify SKUs from Most

question 25

Multiple Choice

ABC analysis uses a single criterion to classify SKUs from most important to least important.

• A) True
• B) False
• C) I have no idea

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Definitions:

United States Environment Protection Authority

A federal agency tasked with protecting human health and the environment by creating and enforcing regulations based on laws passed by Congress.

Prevention Costs

Expenditures incurred to prevent defects in products or services, including costs related to quality planning, training, and preventive maintenance.

Defects

Imperfections or faults in a product that cause it to deviate from its intended design, reducing its quality and possibly making it unfit for use.

Services

Economic activities that provide intangible benefits or assistance to consumers, businesses, or other entities.