alleryStart learning →ABC analysis resembles which principle, where few items carry most value?
AGoing concern
BPareto principle
CPeter principle
DPrudence concept
Answer & Solution
Correct answer: B. Pareto principle
As in the Pareto principle, a small share of items accounts for a large share of total value.
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Related questions
The ABC concept is based on whose law?An item needs 500 units a year at Rs 40 each. What is its annual usage value?After computing usage values, items are arranged in which order?In ABC analysis, how is an item's annual usage value computed?ABC class thresholds are what?Class B holds 30% of items. About what share of annual consumption value does it hold?Half of all items fall in class C. Roughly what share of consumption value do they hold?Which class gets the simplest controls and minimal records?