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CIPS L5M10 Exam - Topic 1 Question 14 Discussion

Paul, a Warehouse Manager, is using an ABC method to classify inventory. Which class would contain the most valuable products?
A) A
B) B
C) C
D) Any --- ABC does not categorise by cost

CIPS L5M10 Exam - Topic 1 Question 14 Discussion

Actual exam question for CIPS's L5M10 exam
Question #: 14
Topic #: 1
[All L5M10 Questions]

Paul, a Warehouse Manager, is using an ABC method to classify inventory. Which class would contain the most valuable products?

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Suggested Answer: A

Comprehensive and Detailed Explanation From Exact Extract:

ABC (Pareto) classification typically groups a small proportion of high-value items as ''A'' (often 10--20% of items accounting for a large share of value), with ''B'' and ''C'' representing progressively lower value importance. (Reference: CIPS L5M10 Study Guide, ABC inventory categorisation, p. 9)


by Kristeen at Jun 17, 2026, 10:44 AM

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Nichelle
4 days ago
Yeah, A makes sense for valuable inventory.
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Mayra
9 days ago
True, but A is still the common choice.
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Francoise
14 days ago
But what about D? It says ABC doesn't categorize by cost.
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Nichelle
19 days ago
Agreed, A is for high-value products.
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Mayra
25 days ago
I think it's A. Most valuable items go there.
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Shonda
30 days ago
I don't know, seems too simple to just categorize by value.
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Aliza
1 month ago
Definitely A, that's standard ABC classification.
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Beckie
1 month ago
Wait, are we sure about that? I thought it was just about quantity.
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Loreen
2 months ago
Totally agree, A is where the high-value items are.
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Bong
2 months ago
Class A has the most valuable products!
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Dawne
2 months ago
From what I recall, class A definitely has the most valuable items. It’s like the 80/20 rule, right?
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Tegan
2 months ago
I’m a bit confused though. Does ABC really categorize by cost, or is it just about quantity?
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Nohemi
2 months ago
Yeah, I agree with Marsha. I practiced a similar question where A was the highest value category.
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Marsha
2 months ago
I think class A contains the most valuable products, but I’m not entirely sure. I remember something about A being the top tier.
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