In ABC analysis, the C items are those which represents -
Small percentage of total consumption value
They account for a relatively small percentage (often around 5-10%) of the total consumption value. They represent a small percentage of the total consumption value . As shown in the table, C items represent a large proportion of the quantity but only a small percentage of the total consumption value. Therefore, the correct answer is Small percentage of total consumption value.
Important Questions from Inventory Control
- AB Ltd. manufactures filing cabinets. For the current year, the company expects to sell 4,000 cabinets involving a loss of Rs. 2,00,000. Only 40 percent of the plant's normal capacity is being utilised during the current year. The fixed costs for the year are Rs. 10,00,000 and fully variable costs are 60 percent of the sales value. What is the break-even point in terms of sales value?
Margin of safety in break-even analysis is
A manufacturing company has an expected usage of 50,000 units of a certain product during next year. The cost of processing an order is Rs. 20 and the carrying cost per unit is Rs. 0.50 for one year. What will be the Economic Ordering Quantity ?
For an organization producing a product, the fixed cost per month is Rs. 12000. The variable cost per product is Rs. 24. The unit selling price of the product is Rs. 48. To achieve break-even, the minimum production per month shall be
Break-even point shows that
