What Is Generally True About the Class C SKUs in ABC

question 67

Multiple Choice

What is generally true about the class C SKUs in ABC analysis? They represent about:

• A)20 percent of all SKUs.
• B)50 percent of all SKUs.
• C)15 percent of the dollar usage.
• D)50 percent of the dollar usage.

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Definitions:

Growth Rate

The rate at which a company's earnings, revenue, or other financial metric increases on a year-to-year basis.

Zero Growth Stock

Zero growth stock refers to shares in a company that is expected to experience neither growth nor decline in its dividends or earnings in the foreseeable future.

Required Rate

The minimum return an investor is willing to accept when investing in a project, taking into account the risk level of the investment.

Annual Dividend

The total amount of money paid by a company to its shareholders in the form of dividends over a year.