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

Graphical method, GRAPHICAL METHOD Graphical methods can be used in gam...

GRAPHICAL METHOD Graphical methods can be used in games with no saddle points and having pay off m X 2 or 2 X n matrix. The aim is to substitute a much simpler 2 X 2 matrix for

Participative budgets- budgetary styles, Participative Budgets In this ap...

Participative Budgets In this approach to budgeting, budgets are developed by lower level managers who then submit them to their superiors. The budgets depend on the lower level

Cost-volume-profit assumptions, Cost-Volume-Profit assumptions The main...

Cost-Volume-Profit assumptions The main assumptions required in C-V-P analysis are: 1) The relationship holds merely within the appropriate range. The relevant range is a ba

Facets of cash management, Cash management is related along with the manage...

Cash management is related along with the management of: Cash outflows and inflows of the firm Cash flows inside the firm Cash balances as financing deficit and inve

Activity ratio, Accounting ratios that determine a firm's ability to conver...

Accounting ratios that determine a firm's ability to convert various accounts within their balance sheets into sales or cash. Companies will usually try to shift their productio

Case study, 1 Describe the impact of different types of standards on motiva...

1 Describe the impact of different types of standards on motivations, and specifically, the likely effect on motivation of adopting the labor standard recommended for Geeta & Compa

TOTAL PRODUCTIVE MAINTENANCE, Identify the ways in which Total Productive M...

Identify the ways in which Total Productive Maintenance could be applied as part of a manufacturing organisation''s quality programme

Corporate Governance., Discuss the dominant compensation philosophy, share ...

Discuss the dominant compensation philosophy, share value creation and the link between company size and executive pay. Solve Parmalat''s case, which may be found in reading No. 8.

Balanced score card, Balanced Score Card This is a popular approach in ...

Balanced Score Card This is a popular approach in current management thinking which consists of a variety of indicators both financial and non-financial. The balanced scorecard

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