BUSI $2113|$ UNIT $9|$ INVENTORY MANAGEMENT MANAGING INVENTORY

Which of the following statements about ABC analysis is FALSE?

A ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings

In ABC analysis, $"$A$"$ items should have tighter physical inventory control than $"$B$"$ or $"$C$"$ items have

In ABC analysis, forecasting methods for $"$C$"$ items may be less sophisticated than for $"$A$"$ items

D ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings

E Criteria other than annual dollar volume, such as high holding cost or delivery problems, can determine item classification in ABC analysis

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