Which of the Following Statements About ABC Analysis Is False

question 60

Multiple Choice

Which of the following statements about ABC analysis is False?

• A) ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings.
• B) In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive regular review by major decision makers.
• C) In ABC analysis, "C" Items have minimal records, periodic review, and simple controls.
• D) ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
• E) All of the above statements are true.

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Definitions:

Coping Mechanisms

Strategies or behaviors used to manage stress, psychological pain, or challenging situations.

Distress

A state of emotional strain or pain, often caused by excessive stress or anxiety.

Theft

The act of stealing; the unlawful taking of someone else’s property without their consent.

Cognitive Dissonance

A psychological discomfort experienced by an individual who holds contradictory beliefs, values, or attitudes, especially regarding personal decisions and behavior.