Process of abc analysis - inventory control, Financial Accounting

Assignment Help:

Process of ABC Analysis

• Classification:  On the origin of expected use, the items of inventory are categorized according to their categories and per unit Price of each item is found out.

• Ascertainment of Total Cost:  The total cost is computed by multiplying the expected units to be used through per unit cost.

• Rank Determination:  Cost-wise rank is found out for each item of inventory. First rank is allocated to the item along with the highest total cost.

• Computation of Ratio or Percentage: Two ratios/percentages are computed

(i) Percentage of number of units of all items to total units of all items. 

(ii) Total cost of all items to the total cost of all items.

• Determination of ABC Category: ABC categories are formed through combining the items on the origin of their relative values.


Related Discussions:- Process of abc analysis - inventory control

Prepare journal entry to record the accrued biweekly payroll, Stark Company...

Stark Company has five employees. Employees paid by the hour receive a $10 per hour pay rate for the regular 40-hour work week plus one and one-half times the hourly rate for each

Utility of Management accounting, Enumerate the scope and utility of manage...

Enumerate the scope and utility of management accounting.

AS-10.., WHAT IS dEPRECIATION?

WHAT IS dEPRECIATION?

Determine the types of hedging , Go to your assigned corporation's website ...

Go to your assigned corporation's website and access their latest annual report. Answer the following questions regarding their derivative and foreign currency transactions. 1.

Default risk premium on the corporate bond, a) A Treasury bond that matures...

a) A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 8%. Suppose that the liquidity premium on the corporate bond is 0.4%. What is

Accounting concept , What is the implications of applying accounting concep...

What is the implications of applying accounting concepts wrongly?

Journalize the adjusting entries., An accountant made the following adjustm...

An accountant made the following adjustments at December 31, the end of the accounting period: a. Prepaid insurance, beginning, $400. Payments for insurance during the period, $1,2

Dangers of over-reliance on trade credit, Dangers of over-reliance on trade...

Dangers of over-reliance on trade credit In effect for the reason that trade credit represents temporary borrowing from suppliers until invoices are paid it becomes an importan

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