Perform an ABC Analysis on the Following Set of Products

question 16

Essay

Perform an ABC analysis on the following set of products.
$$\begin{array} { | c | c | c | } \hline \text { Item } & \begin{array} { c } \text { Annual } \\\text { Demand }\end{array} & \text { Unit Cost } \\\hline \text { A211 } & 1200 & \$ 9 \\\hline \text { B390 } & 100 & \$ 90 \\\hline \text { C003 } & 4500 & \$ 6 \\\hline \text { D100 } & 400 & \$ 150 \\\hline \text { E707 } & 35 & \$ 2000 \\\hline \text { F660 } & 250 & \$ 120 \\\hline \text { G473 } & 1000 & \$ 90 \\\hline \text { H921 } & 100 & \$ 75 \\\hline\end{array}$$

---

Definitions:

Balance Sheet

A balance sheet that concisely represents a corporation's financial assets, liabilities, and the equity interests of its shareholders as of a definite date.

Credit

A mutual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date with terms specified.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership portion of a company's assets.

Asset

Resources owned or controlled by a company, expected to provide future economic value or benefits.