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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.
When the customers of the company are spread over broad geographical areas then in place of a particular collection centre the company opens collection centres at the regional stag
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Competition oriented pricing policy Most companies fix the price of their products after a careful consideration of the competitor's price structure. Deliberate policy may be f
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Exercises 2-1, 2-2, 2-3, 2-4 Problem 2-14 I didn’t write every question down out of the book just questions 2-1, and 2-2. Exercise 2-1 classifying manufacturing cost. Your boat,
Definition of Activities based costing Activity based costing is a system that focuses on activities as the fundamental cost objects and uses the costs of these activities as b
briefly discuss five characteristics of relevant cost
What does it mean when we say consistency is the central feature of economic rationality?
A purchased product, sold in a retail store, has a normally distributed daily demand, with a mean of 8 units/day and a variance of 4 (units) 2 . Its supply lead time is 6 days and
Lock Box System: In this type of system, the customers are advised to mail their payments to a post office box hired through the firm for collection purposes near their region. T
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