The Basic Assumption of the ABC Approach to Inventory Management

The basic assumption of the ABC approach to inventory management is that:

A) inventory should be divided dependent on the type of cash or credit sale anticipated.
B) most items are ordered,stocked,and sold in a relatively short period of time.
C) firms should receive A customer's order Before incurring inventory Costs.
D) a small portion of inventory represents a large portion of inventory costs.
E) firms should Always Be Consistent in the amount of inventory ordered.

Correct Answer:

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