Question

6. Which of the following statements is most accurate?

A. About 20% of the items will usually account for about 80% of the total value.
B. "A" items should have the loosest possible control.
C. The general rule for using the ABC approach is to have plenty of everything in stock.
D. "C" items account for about 50% of the total value

Answer 1

Answer: The correct answer is "A. About 20% of the items will usually account for about 80% of the total value.".

Explanation: The statement "About 20% of the items will usually account for about 80% of the total value." is most accurate because this is the pareto principle or the 80/20 rule, which is a "general truth" in all kinds of distributions and is a powerful tool for evaluating one's own work....