Q. ABC analysis in materials management is a method of classifying the inventories based on the

A. Economic order quantities
B. Value of the annual usage of the items
C. Volume of material consumption
D. Quantity of material used

Answer – Value of the annual usage of the items

ABC analysis is an inventory categorization method which consists in dividing items into three categories (A, B, C): A being the most valuable items, C being the least valuable ones