Oracle E-Business Suite R12.1: Order Management Essentials — Question 3

Which three statements are true about ABC analysis? (Choose three.)

Answer options

• A. the ABC class is an Item attribute.
• B. There can be only three classes A, B, and C.
• C. an ABC class must be assigned to at least one ABC group.
• D. ABC classes can be used to group Items for planning purposes.
• E. ABC classes can be used to identify the value groupings to which your Items belong.

Correct answer: C, D, E

Explanation

The correct answers are C, D, and E because C states that an ABC class needs to be linked to an ABC group, which is essential for classification. D highlights the utility of ABC classes in organizing items for planning, while E explains how these classes help in determining value categories of items. Options A and B are incorrect as they do not reflect the comprehensive nature of ABC analysis, which is not limited to just three classes.