what is the mean of ABC analysis ?
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Answer / sanjeeb kumar behera
ABC analysis stands for Always Better Control...In this
method of Inventory control ..the most valuable materials
being of small quantities yet of high sensitive are Ranked
as "A" and the next category is "B" and the raw materials
which are of large volume but of lower price sensitive are
ranked "C".
| Is This Answer Correct ? | 36 Yes | 7 No |
Answer / dr. devendra kr. sharma
ABC Analysis:
"
Always Better Control" Analysis is a technique for
inventory managementwhich enables top management to place
the effort where the result will be the highest.under this
method highest value of inventory kept in category
A;lowest value of inventory kept in category c and medium
value of inventory in categfory B. It can be combining item
on the basis of their relative value to form three
categories A,B and C. The norma; mitems in most of the
oraganisation show the following pattern:
A- 5 to 10 % of top number of items account for about 70 to
75% of the total consumption value. These items are called
'A' items.
B - 15 to 20% of number of item account for 15 to 20% of
the consumption value. These items are called 'B' items.
C- 70 to 80% of the items account for the remaining 5 to
10% of the total issue value. These items are called 'C'
items.
| Is This Answer Correct ? | 16 Yes | 3 No |
Answer / dharmendar singh rawat
ABC analysis stands for Always Better Control...In this
method of Inventory control ..the most valuable materials
being of small quantities yet of high sensitive are Ranked
as "A" and the next category is "B" and the raw materials
which are of large volume but of lower price sensitive are
ranked "C".
| Is This Answer Correct ? | 13 Yes | 2 No |
Answer / h.r. sreepada bhagi
As mentioned in some of the answers above ABC Analysis
refers to classification of inventory on the basis of volume
and value for better control and management.
In costing ABC also refers to Activity Based Costing as
mentioned in some answers above. But answer to this question
is inventory classification and not Activity Based Costing.
| Is This Answer Correct ? | 7 Yes | 1 No |
Answer / r.chandrasekaran
Activity Based Costing is called ABC analysis. Cost of each activity on a particular product will be maintained separately to know the cost of production of the particular product, when a company has multi product mix production. For example, sales and administration expenses will normally be maintained in general. If keep analysing the cost of each activity for each product, then the real cost of production will be known under this ABC analysis.
| Is This Answer Correct ? | 9 Yes | 6 No |
Answer / khemraj k
simply'
A-items are goods which annual consumption value is the highest. The top 70-80% of the annual consumption value of the company typically accounts for only 10-20% of total inventory items.
C-items are, on the contrary, items with the lowest consumption value. The lower 5% of the annual consumption value typically accounts for 50% of total inventory items.
B-items are the interclass items, with a medium consumption value. Those 15-25% of annual consumption value typically accounts for 30% of total inventory items.
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / sruthi ramaraju
activity based costing is called ABC analysis , it is also called always better control.
A stands with items that account about 70 to 75 % of total consumption.
for example bitumen , cement all these materials comes main products which are most widely needed in the construction.
B stands with items that account about 15 to 20 % of medium consumption or natural consumption.
for example aggregate and all other that comes with aggregate.
C stands with the items that account only about 5 to 10 % of lowest consumption.
for example sand and so on....
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / raj
ALL THE ABOVE ANSWERS ARE WRONG. ABC STANDS FOR ACTIVITY
BASED COSTING. ABC COSTING IS A UNIQUE METHOD OF COSTING
WHICH IS BASED ON SEGMENTATION OF COSTING.
| Is This Answer Correct ? | 10 Yes | 12 No |
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