Correct option is B
ABC analysis (Always Better Control) is an inventory management technique that classifies inventory into three categories (
A, B, and C) based on their
annual consumption value (cost significance).
·
A items: High-value items, low in quantity but contribute to a large percentage of total inventory value (usually
70–80% of total consumption value).
·
B items: Moderate value items, contributing
15–25% of total consumption value.
·
C items: Low-value items, high in quantity but contribute to a
small percentage (5–10%) of total consumption value.
