What percentage of budget is spent on the 15% of items in Group B according to the ABC System?

In the ABC system of inventory classification, items are divided into three categories based on their value and contribution to overall inventory spending. Category A includes the most valuable items, category B contains moderately valuable items, and category C comprises the least valuable items.

When looking specifically at Group B, which typically represents about 15% of the total items, it is important to recognize that this group accounts for a significant portion of the budgeted expenditure. In many cases, although this 15% of items may represent a smaller portion of the total inventory by quantity, they often account for a noteworthy amount of the budget due to their relative importance and value.

In this instance, the fact that Group B represents 15% of the items correlates directly with the understanding that the budget spent on them is indeed 15%. This percentage indicates that these items are relatively significant in terms of cost or value among the total inventory categories, supporting effective inventory management strategies.

Understanding this distribution helps in prioritizing resource allocation for inventory control, focusing more attention on the items that, while fewer in number, still constitute a considerable portion of the budget. Thus, the percentage of the budget spent on the 15% of items in Group B is 15%.