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2. Her efforts on negotiation contracts, obtaining competitive bids and establishing control procedures should be spent on which items? Explain. b. How should she handle Citems? Explain.

2. Her efforts on negotiation contracts, obtaining competitive bids and establishing control procedures should be spent on which items? Explain. b. How should she handle Citems? Explain.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Erica would like to perform an ABC inventory analysis. She has gathered the following annual figures for her jewelry design business: Metals (gold/silver), $25,000; Beads, S4,800; Clasps/closures, $3,500; Semi-precious stones, $8,500; Jeweler's tools/supplies, $1,800, Bags/boxes, $425; Ribbon, $250; Mise, $100 1. Hint: You already have the total cost for each item, start by listing the inventary items in descending order, based on cost. See pages 225- 226. Percentage % ABC Classification Item Annual Cost Cumulative % a. Her efforts on negotiation contracts, obtaining competitive bids and establishing control procedures should be spent on which items? Explain. b. How should she handle C items? Explain.
Transcribed Image Text:Erica would like to perform an ABC inventory analysis. She has gathered the following annual figures for her jewelry design business: Metals (gold/silver), $25,000; Beads, S4,800; Clasps/closures, $3,500; Semi-precious stones, $8,500; Jeweler's tools/supplies, $1,800, Bags/boxes, $425; Ribbon, $250; Mise, $100 1. Hint: You already have the total cost for each item, start by listing the inventary items in descending order, based on cost. See pages 225- 226. Percentage % ABC Classification Item Annual Cost Cumulative % a. Her efforts on negotiation contracts, obtaining competitive bids and establishing control procedures should be spent on which items? Explain. b. How should she handle C items? Explain.
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