Retailers Often Find the 80-20 Principle Evident Within the ABC

question 86

Multiple Choice

Retailers often find the 80-20 principle evident within the ABC analysis. What does the 80-20 principle imply?

• A) About 20 percent of a retailer's sales promotion sells 80 percent of its inventory.
• B) Approximately 20 percent of a retailer's sales come from 80 percent of its products.
• C) Approximately 80 percent of a retailer's inventory was sold, and 20 percent was wasted.
• D) 80 percent of the retailer's customers are repeat customers and only 20 percent are new.
• E) Approximately 80 percent of a retailer's sales come from 20 percent of its products.

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Definitions:

Primary Color

A base color that cannot be created by combining other colors in the color spectrum, usually red, blue, and yellow in traditional color theory.

Discriminate

to distinguish or differentiate between things or people based on certain criteria, which can be both positive, such as recognizing differences, and negative, leading to prejudice.

Saturation

The point at which a substance can no longer absorb or dissolve another substance, or in qualitative research, the stage at which no new information is obtained.

Chromatic

Relates to colors or the property of color, often used in the context of chromatic aberration in lenses or chromatic scales in music.