The ABC Classification of inventory is a means to categorize materials in terms which one of the following?

C option is the right answer.

Hello Team,

ABC Analysis Categories

There are no fixed threshold for each class, different proportion can be applied based on objective and criteria. ABC Analysis is similar to the Pareto principle in that the 'A' items will typically account for a large proportion of the overall value but a small percentage of number of items.[3] Example of ABC class are

·         ‘A’ items – 20% of the items accounts for 70% of the annual consumption value of the items.

·         ‘B’ items - 30% of the items accounts for 25% of the annual consumption value of the items.

·         ‘C’ items - 50% of the items accounts for 5% of the annual consumption value of the items.

Another recommended breakdown of ABC classes:[4]

1.   "A" approximately 10% of items or 66.6% of value

2.   "B" approximately 20% of items or 23.3% of value

3.   "C" approximately 70% of items or 10.1% of value

Regards,

Saiyid

thanks for invition ,,,,,,,,,,

my choice is option C 

Answer is the option c) =========================================Their Annual Usage

Yes, Annual usage will be one category for classification because for example, wheel bolts are low cost item if we see it as a single unit, but if we actually monitor the usage, off take of wheel bolt will be 40 bolts for a 4 wheel vehicle (including one spare wheel). So annual usage may exceed few of the A value items cost.

c. Their Annual Usage---------

I agree with Mr. Sayid's answer. Thanks. 

C option                                  .

Their Function________________---Answer