Home » Microsoft » MB6-703 » Which ABC code should you identify?
You plan to run an automatic update on the ABC classifications of all items.
You need to identify which ABC code to update based on the sales of each item in a given period.
Which ABC code should you identify?
A. Value
B. Revenue
C. Margin
D. Carrying cost
Correct Answer: B
Explanation/Reference:
BC code for revenue
A classifier that names categories in an ABC classification that ranks discrete categories of items according to their revenue.
Note: ABC classification
A system for ranking discrete categories of items according to Pareto’s 80/20 principle that states that a small percentage of items account for the largest fraction of significance.
Incorrect:
Not Value, Not Margin: not such ABC codes.
Not D: ABC code for carrying cost classification
A classifier that names categories in an ABC classification that ranks discrete categories of items according to their carrying cost.
