What Is Generally TRUE About Class C SKUs in ABC

question 202

Multiple Choice

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

• A)20 percent of all SKUs.
• B)30 percent of all SKUs.
• C)5 percent of the dollar usage.
• D)50 percent of the dollar usage.

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Definitions:

Long Run

A period in which all inputs, including capital, are variable, allowing firms to adjust all factors of production.

Underallocation Of Resources

A situation where resources are not optimally distributed, often leading to inefficiencies and missed opportunities in the market.

Purely Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and the freedom of entry and exit, resulting in firms being price takers.

Marginal Cost

The additional cost incurred by producing one more unit of a product, a crucial concept in economics for determining optimal production levels.