Which of the Following Statements Is True of the ABC

Multiple Choice

Which of the following statements is True of the ABC analysis?

A) It compares actual and planned sales to determine the quantity of merchandise needed.
B) It uses a weighted-average score for each vendor.
C) The A items account for 10 percent of the SKUs and 20 percent of sales.
D) The SKUs in a merchandise category are rank-ordered by several performance measures.
E) The C items account for 65 percent of SKUs and contribute to 70 percent of sales.