Q. Which of the following statements about ABC analysis is false?
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(A)
ABC analysis is based on presumption that controlling the few most important items produces the vast majority of inventory savings
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(B)
In ABC analysis “A” items are tightly controlled , have accurate records ,and receive regular review by major decision makers
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(C)
In ABC analysis “c” items minimal records , periodic review , and single control
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(D)
ABC analysis is based on the presumption that all item must be tightly controlled to produce important cost savings
✅ Correct Answer: (D)
ABC analysis is based on the presumption that all item must be tightly controlled to produce important cost savings