Example of abc analysis, Financial Accounting

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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%

 

 


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