Which of the Following Is True About the ABC Approach

Multiple Choice

Which of the following is true about the ABC approach to managing inventory?

A) It involves determining inventory stocking requirements directly from the financial plan.
B) It involves managing inventories based on the total value of their usage per unit of time.
C) It involves maintaining safety stocks to accommodate unexpected changes in demand and supply.
D) It involves determining the point at which ordering costs equal carrying costs.
E) It involves quantifying the amount of each component needed on the basis of the product demand forecast.