Final answer:
ABC analysis is indeed flexible and not solely dependent on the annual dollar volume; other criteria such as usage frequency, lead time, and criticality to production can be used to categorize inventory.
Step-by-step explanation:
The statement 'ABC analysis- other criteria than annual dollar volume may be used' is True. ABC analysis is a method used in materials management and inventory control for categorizing items into three classes (A, B, and C) based on their importance. While the most common criterion for this categorization is the annual dollar volume, other factors can also be considered.
For instance, items could be grouped based on the frequency of use, lead time, criticality to the production process, or any other factors deemed significant by the company. This flexibility in criteria allows organizations to adapt the analysis to their specific needs and priorities.