Product Product Cost per Yearly Yearly % of the

number Description Piece Usage Turnover Yearly

Turnover
1 Spindle € 0.50 1,000 € 500.00 8.3%
2 Clamp € 1.00 24 € 24.00 0.4%
3 Pushing Clamp € 0.25 12 € 3.00 0.1%
4 Ball Bearing € 3.00 50 € 150.00 2.5%
5 Flange € 10.00 300 € 3,000.00 50.0%
6 Sheet Metal € 7.00 4 € 28.00 0.5%
7 Bar € 0.50 10 € 5.00 0.1%
8 Paint € 6.00 300 € 1,800.00 30.0%
9 Chock € 20.00 7 € 140.00 2.3%
10 Riddle € 2.00 175 € 350.00 5.8%
Total € 6,000.00 100.0%

Sequenc Product number Product Cost per Yearly Yearly % of the Cumalativ
e Descripti Piece Usage Turnover Yearly e%
on Turnover
1 5 Flange € 10.00 300 € 3,000.00 50.0% 50.0%
2 8 Paint € 6.00 300 € 1,800.00 30.0% 80.0%
3 1 Spindle € 0.50 1,000 € 500.00 8.3% 88.3%
4 10 Riddle € 2.00 175 € 350.00 5.8% 94.2%
5 4 Ball Bearin € 3.00 50 € 150.00 2.5% 96.7%
6 9 Chock € 20.00 7 € 140.00 2.3% 99.0%
7 6 Sheet Meta € 7.00 4 € 28.00 0.5% 99.5%
8 2 Clamp € 1.00 24 € 24.00 0.4% 99.9%
9 7 Bar € 0.50 10 € 5.00 0.1% 100.0%
10 3 Pushing C € 0.25 12 € 3.00 0.1% 100.0%
Total € 6,000.00 100.0%
Category

A
A
B
B
B
C
C
C
C
C
Sequence Product Product Cost per Yearly Yearly % of the Cumalative %
number Description Piece Usage Turnover Yearly
Turnover

1 5 Flange € 10.00 300 € 3,000.00 50.0% 50.0%

2 8 Paint € 6.00 300 € 1,800.00 30.0% 80.0%
3 1 Spindle € 0.50 1,000 € 500.00 8.3% 88.3%
4 10 Riddle € 2.00 175 € 350.00 5.8% 94.2%
5 4 Ball Bearing € 3.00 50 € 150.00 2.5% 96.7%
6 9 Chock € 20.00 7 € 140.00 2.3% 99.0%
7 6 Sheet Metal € 7.00 4 € 28.00 0.5% 99.5%
8 2 Clamp € 1.00 24 € 24.00 0.4% 99.9%
9 7 Bar € 0.50 10 € 5.00 0.1% 100.0%
10 3 Pushing Clam € 0.25 12 € 3.00 0.1% 100.0%
Total € 6,000.00 100.0%

100.0%

90.0%

80.0%

70.0%

60.0%

50.0% Column H

40.0%

30.0%

20.0%

10.0%

0.0%
1 2 3 4 5 6 7 8 9 10
Category

A
A
B
B
B
C
C
C
C
C
Exam 2019: In a construction project following items are required annually: classify these items in ABC
control

Iteam: 1 2 3 4 5 6 7 8 9 10
Usage 5 3 10 22 1.5 0.2 8 0.4 7.1 6.2
Unit Price (Rs) 7000.00 24000.00 15000.00 6000.00 38000.00 60000.00 300.00 29000.00 11500.00 4100.00

Iteam Unit Yearly Usage Yearly Yearly % of the Cumalative Cumalative Category
Piece(Rs) Turnover turnover Correspo Yearly % % of iteam
(Decending nding Turnover
Order) Iteam
1 7000.00 5.0 35000.00 150000.00 3 25.9% 25.9% 10% A
2 24000.00 3.0 72000.00 132000.00 4 22.8% 48.7% 20% A
3 15000.00 10.0 150000.00 81650.00 9 14.1% 62.8% 30%
A A
4 6000.00 22.0 132000.00 72000.00 2 12.4% 75.2% 40% A
5 38000.00 1.5 57000.00 57000.00 5 9.8% 85.1% 50% B
6 60000.00 0.2 12000.00 35000.00 1 6.0% 91.1% 60% B B
7 300.00 8.0 2400.00 25420.00 10 4.4% 95.5% 70% B
8 29000.00 0.4 11600.00 12000.00 6 2.1% 97.6% 80% C
9 11500.00 7.1 81650.00 11600.00 8 2.0% 99.6% 90% C
10 4100.00 6.2 25420.00 2400.00 7 0.4% 100.0% 100% C C
Total 63.4 579070.00 579070.00 100.0%

RESULT OF CALCULATION

Category Iteam % of iteam % of the

Usage Action
A 3,4,9,2 40% 75.2% Close day to day control
B 5,1,10 30% 20.3% Regular Review
C 6,8,7 30% 4.5% Infrequent Review
 ANNUAL COST CUMMULATIVE
ITEM % ITEM COST %
ABC [Rs.] COST [Rs.]
1 90000 90000
10 % 70 %
A 2 50000 140000
3 20000 160000
N 4 7500 167500
20 % 20 %
A 5 7500 175000
6 5000 180000
L
7 4500 184500
Y 8 4000 188500

S 9 2750 191250
10 1750 193000
I 11 1500 194500

S 12 1500 196000
13 500 196500 10 %
70 %
14 500 197000
15 500 197500
WORK 16 500 198000
S HEET 17 500 198500
18 500 199000
19 500 199500
20 500 200000
10.00 15.77% 15.77%
22.00 34.70% 50.47%
7.10 11.20% 61.67%
3.00 4.73% 66.40%
1.50 2.37% 68.77%
5.00 7.89% 76.66%
6.20 9.78% 86.44%
0.20 0.32% 86.75%
0.40 0.63% 87.38%
8.00 12.62% 100.00%
63.40 100.00%
Exam 2020: The following are the top class construction company, based on the following
60%, price 20%, and delivery 20% more taken into consideration for evaluation purpose. W
your rate and why on the following given indicators:

Iteam: 1 2 3 4 5 6
Usage 5 3 10 22 1.5 0.2
Unit Price (Rs) 7000.00 24000.00 15000.00 6000.00 38000.00 60000.00

Iteam Unit Yearly Usage Yearly Yearly % of the

Piece(Rs) Turnover turnover Correspo Yearly
(Decending nding Turnover
Order) Iteam
1 7000.00 5.0 35000.00 150000.00 3 25.9%
2 24000.00 3.0 72000.00 132000.00 4 22.8%
3 15000.00 10.0 150000.00 81650.00 9 14.1%
4 6000.00 22.0 132000.00 72000.00 2 12.4%
5 38000.00 1.5 57000.00 57000.00 5 9.8%
6 60000.00 0.2 12000.00 35000.00 1 6.0%
7 300.00 8.0 2400.00 25420.00 10 4.4%
8 29000.00 0.4 11600.00 12000.00 6 2.1%
9 11500.00 7.1 81650.00 11600.00 8 2.0%
10 4100.00 6.2 25420.00 2400.00 7 0.4%
Total 63.4 579070.00 579070.00 100.0%

RESULT OF CALCULATION

Category Iteam % of iteam % of the

Usage Action
A 3,4,9,2 40% 75.2% Close day to day control
B 5,1,10 30% 20.3% Regular Review
C 6,8,7 30% 4.5% Infrequent Review

ANNUAL COST CUMM

ITEM % ITEM
ABC [Rs.] CO
1 90000 9
10 %
A 2 50000 1
3 20000 1
N 4 7500 1
20 %
A 5 7500 1
 ANNUAL COST CUMM
ITEM % ITEM
ABC [Rs.] CO
1 90000 9
10 %
A 2 50000 1
3 20000 1
N 4 7500 1
20 %
A 5 7500 1
6 5000 1
L
7 4500 1
Y 8 4000 1

S 9 2750 1
10 1750 1
I 11 1500 1

S 12 1500 1
13 500 1
70 %
14 500 1
15 500 1
WORK 16 500 1
S HEET 17 500 1
18 500 1
19 500 1
20 500 2
ny, based on the following factors quality
for evaluation purpose. Which company will

7 8 9 10
8 0.4 7.1 6.2
300.00 29000.00 11500.00 4100.00

Cumalative Cumalative Category

% % of iteam

25.9% 10% A 10.00 15.77% 15.77%

48.7% 20% A 22.00 34.70% 50.47%
62.8% 30%
A A 7.10 11.20% 61.67%
75.2% 40% A 3.00 4.73% 66.40%
85.1% 50% B 1.50 2.37% 68.77%
91.1% 60% B B 5.00 7.89% 76.66%
95.5% 70% B 6.20 9.78% 86.44%
97.6% 80% C 0.20 0.32% 86.75%
99.6% 90% C 0.40 0.63% 87.38%
100.0% 100% C C 8.00 12.62% 100.00%
63.40 100.00%

ANNUAL COST CUMMULATIVE COST %

[Rs.] COST [Rs.]
90000 90000
70 %
50000 140000
20000 160000
7500 167500
20 %
7500 175000
ANNUAL COST CUMMULATIVE COST %
[Rs.] COST [Rs.]
90000 90000
70 %
50000 140000
20000 160000
7500 167500
20 %
7500 175000
5000 180000
4500 184500
4000 188500
2750 191250
1750 193000
1500 194500
1500 196000
500 196500 10 %
500 197000
500 197500
500 198000
500 198500
500 199000
500 199500
500 200000