Which of the following statements is true of the ABC analysis?
A. It uses a weighted-average score for each vendor.
B. It compares actual and planned sales to determine the quantity of merchandise needed.
C. The C items account for 65 percent of SKUs and contribute to 70 percent of sales.
D. The A items account for 10 percent of the SKUs and 20 percent of sales.
E. The SKUs in a merchandise category are rank-ordered by several performance measures.
Answer: E
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