ABC analysis is based upon the principle that:

A All items in inventory must be monitored very closely

There are usually a few critical items, and many items that are less critical

An item is critical if its usage is high

D More time should be spent on class $"C"$ items because there are many more of them

E As with grade distributions in many MBA courses, there should be more medium$-$level $"B"$ items than either $"A"$ or $"C"$ items