cs executive cost and management accounting mcq notes book ABC Analyza
cs executive cost and management accounting mcq notes book ABC Analyza The ABC analysis in based upon segregation of materials for selection control. Under this method different items are classified into three categories and labeled or A,B, and C respectively depending upon whether they are high value item, middle value item of low value item. It measures the money of stock. High value item deserve very close attention and low value item need to be devoted minimum expense and effort in the task of controlling inventories. The important steps involved in segregation material or inventory under ABC plan as follows 1. Find out future use of each item of stock in term of physical quantities for the review forecast period. 2. Determine the price per unit for each item. 3. Determine the total project cost of each item by multiplying its expected unit. 4. Beginning with the item with the highest total cost, arranges different items in order of their total cost as computed under state (3) above. 5. Express the unit of each item as a percentage
Get the latest updates & Offers right in your inbox.
Copyright © 2015 by CS NOTES HOME