Implementation of abc analysis, Managerial Accounting

Implementation of ABC analysis

The following steps are included in implementing the ABC analysis:

1. Categorize the items of inventories, establishing the expected use in units and price per unit for each item.

2. Establish the total value of each item by multiplying the predictable units by its unit price.

3. Rank the item in accordance with the net value, providing first rank to the item with highest total value and so forth.

4. Calculate the ratios (percentage) of number of units of each item to net units of all items and the ratio of net value of each item net value of all items.

Posted Date: 12/6/2012 6:51:49 AM | Location : United States







Related Discussions:- Implementation of abc analysis, Assignment Help, Ask Question on Implementation of abc analysis, Get Answer, Expert's Help, Implementation of abc analysis Discussions

Write discussion on Implementation of abc analysis
Your posts are moderated
Related Questions
based on your assumptions, calculate the cost per unit (total product cost on a per unit basis) under a traditional accounting system based on direct labor hours (table 1 prepared

What is Sunk cost A cost has been incurred in the past or sunk in the past and is not relevant to the particular decision making, is a sunk cost. If it is decided to replac


JIT purchasing On the other hand is a purchasing system in which material purchased are contracted so as that the receipt and usage of materials to the maximum extent possible,

Management Accounting Influence (A) Transfer pricing and performance measurement relies upon the judgment of the management accountant to make a suitable choice of approach

Advantages of incremental budgeting a) The budget is stable and change is gradual b) Managers can operate their departments on a steady basis c) The system is relatively

Computing equivalents units and assigning costs to completed units and ending work in process; no beginning inventory or cost transferred in (30 -45min) Sue Electronics makes CD p

Selling product for 31.00 and Variable expenses are 26.00. In order to cover the fixed expenses 31,500 hats must be sold what is the Total fixed cost in dollars?

In the documentary bills the seller faces a lot of risk as the risk of non-acceptance or non-payment of goods. This poses a main risk for the seller. These additional securities in

Prepare Summary Journal Entries to record the( 1) requistion slips