Abstract: A cutting tool is in the form of a holder and a cutting insert that is quickly and easily indexable in one of a plurality of precision cutting positions within the holder. The holder has a bore therein and a stop in the bore. The cutting insert has a shank portion that is insertable into the bore. The cutting insert, when inserted into bore, mates with the stop to locate the cutting insert in one of a plurality of positions. Alternatively, the stop can be supported by the cutting insert and mate with the holder.