Retailers Often Find the 80-20 Principle Evident Within the ABC

Multiple Choice

Retailers often find the 80-20 principle evident within the ABC analysis. What does the 80-20 principle imply?

A) About 20 percent of a retailer's sales promotion sells 80 percent of its inventory.
B) Approximately 20 percent of a retailer's sales come from 80 percent of its products.
C) Approximately 80 percent of a retailer's inventory was sold, and 20 percent was wasted.
D) 80 percent of the retailer's customers are repeat customers and only 20 percent are new.
E) Approximately 80 percent of a retailer's sales come from 20 percent of its products.