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

Calculate the book value of share, Thurston Howell IV is the sole heir to t...

Thurston Howell IV is the sole heir to the Howell Enterprise fortune. He does not participate in the business, preferring to tend to his comic book collection. He does however own

Show the basis of weightings, Q. Show the Basis of weightings? (i) Both...

Q. Show the Basis of weightings? (i) Both costs of capital (Ke and Kd) as well as the WACC have been calculated using current   ex-dividend (ex-interest) market values rather t

Show the audit documentation, Q. Show the Audit Documentation? Audit Do...

Q. Show the Audit Documentation? Audit Documentation -Written record of the basis for AUDITOR's conclusions which provides the support for auditor's representations, whether th

Explain final location survey, Q. Explain Final Location Survey? A fina...

Q. Explain Final Location Survey? A final Location Survey is under taken on the completion of traffic survey to select the final rout of the line to be constructed, taking into

Franchise, gershwin coporation obtained afranchise fron sonic hedgeehog inc...

gershwin coporation obtained afranchise fron sonic hedgeehog inc .for a cash payment of $ 120000 on april 1,2010 . the franchise grants gershwin the right to sell certain product a

The objective of accounting standards, A sound foundation is necessary for ...

A sound foundation is necessary for success in any task from building a house to putting on make up. In terms of U.S Accounting standards it is necessary to have a sound foundation

Preferential debts-distribution of assets-liquidation, Preferential debts ...

Preferential debts These are almost the same as in bankruptcy; with the addition that any person who has advanced money for the payment of wages has the same priority as the pe

Qualitative characteristics , Since 1968, Dracula Limited has traded in Don...

Since 1968, Dracula Limited has traded in Doncaster, South Yorkshire as a manufacturer of fancy-dress and theatrical costumes. It produces a wide range of general theatrical costum

Protective Trusts-secret trusts-trusts laws and accounts, PROTECTIVE TRUSTS...

PROTECTIVE TRUSTS The income of property may be settled on such terms as to restrict its availability to creditors of the beneficiary in the following ways: (a) Determinable

Calculate the profit maximization, Complete the table and use the informati...

Complete the table and use the information to determine profit maximization or loss minimization. 1. Complete the table Normal 0 false false false EN-I

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