Answer: identify the respective portion that each group of inventory represents to the overall value
Explanation:
In ABC analysis, an inventory is grouped in three categories. The categories include A items which are items with records that are accurate, precise and have very tight control; B items possess good records and are less tightly controlled; while C items have little records and possess simplest controls possible.
The ABC analysis simply shows the items which have vital effect on the entire cost of the inventory.
