Which of the Following Statements Is True of the ABC

question 7

Multiple Choice

Which of the following statements is true of the ABC analysis?

• A) It compares actual and planned sales to determine the quantity of merchandise needed.
• B) It uses a weighted-average score for each vendor.
• C) The A items account for 10 percent of the SKUs and 20 percent of sales.
• D) The SKUs in a merchandise category are rank-ordered by several performance measures.
• E) The C items account for 65 percent of SKUs and contribute to 70 percent of sales.

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