ECONOMICS

Detailed explanation-1: -Item C: The items placed in this category have the lowest consumption value and account for less than 5 percent of the annual consumption value that comes from about 50 percent of the total inventory items.

Detailed explanation-2: -What is generally TRUE about class C SKUs in ABC analysis? They represent about: 50 percent of all SKUs.

Detailed explanation-3: -C items have the lowest consumption value. This class has a relatively high proportion of the total number of lines but with relatively low consumption values.

Detailed explanation-4: -What Is ABC Analysis in Inventory Management? ABC analysis is an inventory management technique that determines the value of inventory items based on their importance to the business. ABC ranks items on demand, cost and risk data, and inventory mangers group items into classes based on those criteria.