ABC Analysis Is Based Upon the Principle That

question 20

Multiple Choice

ABC analysis is based upon the principle that

• A) all items in inventory must be monitored very closely
• B) there are usually a few critical items, and many items which are less critical
• C) an item is critical if its usage is high
• D) more time should be spent on class "C" items because there are more of them
• E) as with grade distributions in many MBA courses, there should be more medium-level "B" items than either "A" or "C" items

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Definitions:

Quarterly

Pertaining to a period of three months or occurring four times a year.

Forecasted Value

An estimate of what a variable's value will be at a future point in time, based on patterns observed in past data.

Trend Line

A line graphed in a scatter plot to show the general direction of a dataset over time.

Quarterly Data

Data that is collected, reported, or compiled at three-month intervals, often used in financial and economic analysis to track seasonal patterns and short-term trends.