MANAGEMENT

Detailed explanation-1: -ABC analysis is a method in which inventory is divided into three categories, i.e. A, B, and C in descending value. The items in the A category have the highest value, B category items are of lower value than A, and C category items have the lowest value. Inventory control and management are critical for a business.

Detailed explanation-2: -ABC (Always Better Control) analysis is one of the most commonly used inventory management methods. ABC analysis groups items into three categories (A, B, and C) based on their level of value within a business.

Detailed explanation-3: -Activity-based costing (ABC) is a method of assigning overhead and indirect costs-such as salaries and utilities-to products and services. The ABC system of cost accounting is based on activities, which are considered any event, unit of work, or task with a specific goal.

Detailed explanation-4: -’B’ items – 15% of the annual inventory value of your items (likely made up of 30% of your items) ‘C’ items – 5% of the annual inventory value of your items (likely made up of 50% of your items)

Detailed explanation-5: -ABC analysis is an approach for classifying inventory items based on the items’ consumption values. Consumption value is the total value of an item consumed over a specified time period, for example a year.