Example of abc analysis, Financial Accounting

Assignment Help:

Illustration: Dinesh Limited is looking selective control for its inventories. By using the subsequent datas, prepare the ABC plan.

Items                 A           B           C          D          E          F         G

Unit                   8,000     15,000    5,000   7,5000   5,000   7,000    2,500

Unit Cost (Rs.)  5.50     1.70      30.40    1.50      0.65      5.14    51.20

Solution:

 

Item

 

Per Unit

Cost (Rs.)

 

Inventory

 

Total Value

 

 

Cate- gory

 

Units

 

% of

Total

 

Cumul- ative %

 

Total

Cost Rs.

 

% of

Total

 

Cumul- ative %










ABC Analysis:

 

 

C G A F B D E

 

30.40

 

51.20

 

5.50

 

5.14

 

1.70

 

1.50

 

0.65

 

5,000

 

2,500

 

8,000

 

7,000

 

15,000

 

7,500

 

5,000

 

10

15%

5

 

16

30%

14

 

30

 

15 55%

 

10

 

 

 

15%

 

 

45%

 

 

 

 

 

100%

 

1,52,000

 

1,28,000

 

44,000

 

36,000

 

25,000

 

11,250

 

3,250

 

38

70%

32

 

11

20%

9

 

6.38

 

10%

2.80

 

0.82

 

 

 

70%

 

 

90%

 

 

 

 

 

100%

 

 

A

 

 

 

 

 

B C

 

Total

 

 

50,000

 

100%

 

 

4,00,000

 

100%

 

 


Related Discussions:- Example of abc analysis

RETAINED PROFITS BROUGHT FORWARD-group accounts, RETAINED PROFITS BROUGHT F...

RETAINED PROFITS BROUGHT FORWARD If we recall from the consolidated balance sheet, the group-retained profits should be made up of the holding companies retained profit plus the

Bond that matures in 12 years, You just purchased a bond that matures in 12...

You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and has an 7% yearly coupon. The bond has a present yield of 5.74%. What is the bond's yield

Financial management, Discuss the applicability of the operating cycle in p...

Discuss the applicability of the operating cycle in poultry (consider broilers)

Determine the basis of the ultimate cost of the payment, Given information:...

Given information: Offered a $20 million commercial loan priced using a 3month LIBOR index+100bp. After some preliminary research, using a money center bank's swap trading desk

Cashflows from financing activities-group accounts, Cashflows from financin...

Cashflows from financing activities Financing activities are those activities that will lead to either an increase or decrease in shareholders funds and long-term liabilities.

Prepare an income statement, Tyler Smith has worked in an upholstery shop f...

Tyler Smith has worked in an upholstery shop for 10 years. Tyler's wages were $20,000. Lately, Tyler has been unhappy with the shop's owner. Convinced that he could run an upholste

Compute the npv of the cash flows, Ace Company has a 30 percent marginal ta...

Ace Company has a 30 percent marginal tax rate and uses a 12% discount rate to compute NPV. The firm started a venture that will yield the following before-tax cash flows: year 0,

Express trusts-trusts laws and accounts, EXPRESS TRUSTS Creation...

EXPRESS TRUSTS Creation : An express trust is "created not by facts and circumstances, but by the express words of the settlor". (Fitzgerald v Stewart) Completely an

What is the internal rate of return of the project, Hydroponics is consider...

Hydroponics is considering adding another greenhouse that would cost $95,000 and generate $20,000 in annual net cash flows over its 8 year expected life. What is this project's int

Liquidation of the company, The balance sheet of Marilyn and Monroe was as ...

The balance sheet of Marilyn and Monroe was as follows immediately prior to the partnership's being liquidated: cash, $25,426; other assets, $130,439; liabilities, $22,198; Marilyn

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd