Implementation of abc analysis, Managerial Accounting

Assignment Help:

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.


Related Discussions:- Implementation of abc analysis

What are the advantages of cost accounting, What are the Advantages of cost...

What are the Advantages of cost accounting: 1. Cost accounting as an aid to management: cost accounting helps the management in carrying out of its functions, planning, organ

State direct material cost standard, State Direct material cost standard ...

State Direct material cost standard The determination of direct material cost standard would involve: a) Determination of quantity standards and b) Determination of pric

Determine current budgets, Explain Current budgets Current budgets: the...

Explain Current budgets Current budgets: the period of current begets is generally of months and weeks. These budget relate to the current activities of the business. According

Characteristics of current assets, Working Capital management is affected t...

Working Capital management is affected through two characteristics of current assets that are as follows (i) short life span (ii) swift transformation in the other asset forms.

What are the disadvantages of incremental budgeting, Disadvantages of incre...

Disadvantages of incremental budgeting a) Incremental budgeting suppose activities and method of working will continue in the same way b) No incentive for developing their d

Accounting concepts, implications of applying accounting concepts wrongly

implications of applying accounting concepts wrongly

Objectives of receivables management, After going through this section, you...

After going through this section, you must be capable to: Know the need for establishing sound credit policy; Identify the different credit policy variables; Know the cred

State the price determination under the market condition, State the price d...

State the price determination under the market condition The price determination under the following market condition is as follows: 1) Pure competition: in this situation

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