Question:-
ABC analysis in materials management is a method of classifying the inventories based on
Option (A)
The value of annual usage of the items
Option (B)
Economic order quantity
Option(C)
Volume of material consumption
Option(D)
Quantity of materials used
Correct Option:
(A)
Question Solution:
In ABC (Always Better control) analysis the items are classified in three main categories based on classified in three main categories based on their respective usage value:
Category ‘A’ items: Most costly & valuable items.
Category ‘B’ items: These items having average consumption value.
Category ‘C’ items: These items having low consumption value.
question-answer-faq-8817