Multiple choice

An ABC analysis shows that

  1. the maximum proportional value of the inventory is made up by a small number of items

  2. the maximum proportion value of the inventory is made up by a large number of items

  3. both 1 and 2

  4. neither 1 nor 2
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

ABC analysis is based on the Pareto principle, where a small number of items (A) account for the majority of the total inventory value.

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