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

Financial accounting regulation, Carminho Building Products Ltd (an Austral...

Carminho Building Products Ltd (an Australian company) is a client of Rodrigues Accounting (RA). Carminho Building Products Ltd (CBP) is involved in the development, manufacture a

Application of discharge-discharge of bankrupt, Application of discharge ...

Application of discharge Application may be made at any time after adjudication, but cannot be heard until the conclusion of the public examination. Notice of the hearing must

Petition by creditor-bankruptcy, Petition by creditor Any creditor incl...

Petition by creditor Any creditor including an assignee of a debt, may petition, provided: The debt due to him amounts to at least Shs 1,000; The debt is certain and i

Determine the term- understandability, Determine the term- Understandabilit...

Determine the term- Understandability Accounting reports must be expressed as clearly as possible and must be understood by those at whom the information is aimed.

What is the break-even sales, If fixed costs are $259,238, the unit selling...

If fixed costs are $259,238, the unit selling price is $112, and the unit variable costs are $63, what is the break-even sales (units)?

Liquidity ratio, For each of the ratios listed below, indicate by the appro...

For each of the ratios listed below, indicate by the appropriate code letter, whether itis a liquidity ratio, a profitability ratio, or a solvency ratio. Code: L=Liquidity rati

The balance sheet-financial statement, THE BALANCE SHEET It shows the f...

THE BALANCE SHEET It shows the financial position of the company as at the end of a given financial period. The standard requires that assets and liabilities should be classifi

Repayment of principal, a) Your company is planning to take $1,750,000 on a...

a) Your company is planning to take $1,750,000 on a 3-year, 10%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will sho

Capital expenditures of the firms - corporate stockholders, The concern upp...

The concern uppermost in Sonia Burdett's mind at present was how to effectively communicate to the firm's Board of Directors the soundness of her financial policies. Ms. Burdett is

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