Question

Abc analysis helps to ascertain the minimum level of stock of raw material true false

Answer 1

Explanation:

I THINK IT'S TRUE.....

Answer 2

Answer:

The statement is False.

Explanation:

ABC Analysis -

• "The value of inventory items is calculated using the inventory management technique of ABC analysis based on their significance to the company. "
• Inventory managers classify things according on how ABC prioritises them based on demand, cost, and risk data. This aids business executives in comprehending which goods or services are most important to the financial success of their company.
• The ABC analysis used for inventory management is distinct from the ABC analysis used for cost accounting, also known as activity-based costing. Activity-based costing is a manufacturing technique used by accountants to allocate indirect or overhead costs, like as salaries or utility costs, to goods and services.

Hence, we can conclude that ABC analysis doesn't help to ascertain the minimum level of stock level of raw materials, instead it helps calculate the value of inventory on the basis of its importance.

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