Which of the Following Is an Advantage of the ABC

Multiple Choice

Which of the following is an advantage of the ABC system of inventory control?

A) Recognizes that stock outs on low margin items may be as critical for customers as stock outs on high margin items.
B) Prevents high demand items from being out of stock.
C) Smoothes demand and, therefore, inventory withdrawal.
D) Relates the opportunity costs due to poor inventory management to the cost of inventory control.
E) Allows management to focus more equally on higher value inventory as well as on lower value items.