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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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Dawne
8 hours 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
6 days ago
I’m a bit confused though. Does ABC really categorize by cost, or is it just about quantity?
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Nohemi
11 days ago
Yeah, I agree with Marsha. I practiced a similar question where A was the highest value category.
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Marsha
16 days 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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