Question

ABC classification schemes work well only in industries that require occasional contact with the same accounts, such as medical equipment industries and capital products industries.

Answer 1

ABC classification is a business method used to categorize inventory, pertinent in industries like medical equipment, which have infrequent but important customer contact. It's related to classification and division strategies, and aligns with a focus on core competency in businesses.

Step-by-step explanation:

The student’s question revolves around the concept of ABC classification, which is a business and inventory management tool typically used to categorize inventory into different groups. This method is beneficial in industries with infrequent but important contacts with the same accounts. The classification and division strategies in writing relate to how a single subject or group is divided into various categories, or how different elements are combined into comprehensive categories, thereby aiding in the understanding of a complex concept through its smaller components. As noted in various business models, companies that focus on their core competency tend to show greater success by narrowing down their product range, which aligns well with the ABC classification approach, as it enables businesses to prioritize and manage their resources effectively.