26 January 2010
my question is from material control.pricing of issue. Q.1.what is standard cost method, replacement cost ,and base stock method. Q.2- what is the use of ABC system/technique in costing . why companies use this.
26 January 2010
Q.1.Standar cost method- A price arrived based on the Standard costing of the firm engaged Replacement cost is the cost to replace the current materials. suppose you are having the 100 units materials i stock how much you need to pay the same to replace the matrials
Base stock method is the method based on the materials in the stock ABC System of Inventory Management A - outstandingly important; B - of average importance; C - relatively unimportant as a basis for a control scheme. Each category can and sometimes should be handled in a different way, with more attention being devoted to category A, less to B, and still less to C.
Popularly known as the "80/20" rule ABC concept is applied to inventory management as a rule-of-thumb. It says that about 80% of the Rupee value, consumption wise, of an inventory
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