Multiple choice

In inventory control, ABC analysis is performed by comparing

  1. items used against items unused/infrequently used

  2. value of items consumed with their quantities

  3. value of items held in stock with their quantities

  4. value of items held in stock with the number of items
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

ABC analysis categorizes inventory by classifying items based on their annual consumption value (quantity multiplied by unit cost) to prioritize control efforts.

Keep practicing — related questions