Company D is planning to perform anABC analysis for its products. Aninformation table is given below.ItemAnnual DemandUnit Cost180$100130$140C600$220D.60$7050$80Assuming that class A itemsrepresent about 75% of the totaldollar usage, class B about 20%,class C less than 5%, what is theannual dollar volume of Item D?a. 132000b. 4200C. 18200d. 4000e. 18000

ABC analysis is an inventory control method which include categorizing of items used in production…

Company D is planning to perform an ABC analysis for its products. An information table is given below. Item Annual Demand Unit Cost 180 $100 B. 130 $140 C 600 $220 60 $70 50 $80 Assuming that class A items represent about 75% of the total dollar usage, class B about 20%, class C less than 5%, what is the annual dollar volume of Item D? a. 132000 b. 4200 C. 18200 d. 4000 e. 18000

Company D is planning to perform an ABC analysis for its products. An information table is given below. Item Annual Demand Unit Cost 180 $100 B. 130 $140 C 600 $220 60 $70 50 $80 Assuming that class A items represent about 75% of the total dollar usage, class B about 20%, class C less than 5%, what is the annual dollar volume of Item D? a. 132000 b. 4200 C. 18200 d. 4000 e. 18000

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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Question

Company D is planning to perform an
ABC analysis for its products. An
information table is given below.
Item
Annual Demand
Unit Cost
180
$100
130
$140
C
600
$220
D.
60
$70
50
$80
Assuming that class A items
represent about 75% of the total
dollar usage, class B about 20%,
class C less than 5%, what is the
annual dollar volume of Item D?
a. 132000
b. 4200
C. 18200
d. 4000
e. 18000

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