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

Material storage, Material storage Sophisticated mathematical models to...

Material storage Sophisticated mathematical models to control economic buying, and systems control the flow of material may all be for naught if the obvious-efficient storekeep

Standard error of the slope, Std error of the slope (Sb) Correlation co...

Std error of the slope (Sb) Correlation coefficient measures the degree of association between two variables such as the cost and the activity level. The standard error of ‘

What are the disadvantages of activity based costing, Disadvantages of acti...

Disadvantages of activity based costing 1) It is essentially not the panacea for all ills. 2) It absorbs a lot of resources. 3) Too much emphasis on customer viability c

Assignment, Application of Information technology in respect of management ...

Application of Information technology in respect of management information system

Critique of performance measurement, Critique of Performance Measurement ...

Critique of Performance Measurement This section brings together material from preceding data in this lesson in order to provide a critical appraisal of performance measurement

Multiple regression, MULTIPLE REGRESSION The least square regression eq...

MULTIPLE REGRESSION The least square regression equation discussed above was based on the assumption that total cost was determined by only one activity based variable. However

Explain the terms - cost object and activities, Explain the terms - Cost ob...

Explain the terms - Cost object and Activities Cost object : it is an item for which cost measurement is required for example a product or a customer. Activities: these c

Assignment help, I need help making sure I did my accounting assignment cor...

I need help making sure I did my accounting assignment correctly

Evaluate consumer surplus and the average price, Suppose the consumer is at...

Suppose the consumer is at coffee shop 2. Coffee shop 2 provides unlimited cups of coffee for the price of $9.00 per day. - How many cups would she drink a day and how much woul

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