Which of the Following Statements Concerning ABC Analysis Is False

Multiple Choice

Which of the following statements concerning ABC analysis is false?

A) Class B items typically account for 20 percent of the company's business in dollars.
B) There are typically less class A items in stock than class B.
C) Class C items typically account for 70 percent of the company's inventory items.
D) Class C items tend to have more complex inventory policies than Class B items.
E) Class B items typically account for 20 percent of the company's items in inventory.