Ordering costs-relevant costs of eoq model, Managerial Accounting

Ordering Costs

These are incurred in getting purchased items into the company’s inventory or stores, and usually consist of clerical costs of:

•    Making the purchase demand.
•    Issuing of a purchase order
•    Follow-up action
•    Receiving the goods
•    Inspection for quality control
•    Placing goods in stores
•    Paying vendors (Suppliers)

Note:

The basic EOQ model assumes that these costs are fixed constant for each order made.

Posted Date: 12/6/2012 6:00:17 AM | Location : United States







Related Discussions:- Ordering costs-relevant costs of eoq model, Assignment Help, Ask Question on Ordering costs-relevant costs of eoq model, Get Answer, Expert's Help, Ordering costs-relevant costs of eoq model Discussions

Write discussion on Ordering costs-relevant costs of eoq model
Your posts are moderated
Related Questions
The firm's require holding cash may be attributed to the three motives specified below: The transaction motive The precautionary motive The speculative motive.

How might a company use regression results to manage overhead costs?

INTRODUCTION AND RATIONALE The purpose of this assignment is to help students further develop a number of the skills and knowledge required and valued by the accountancy profe


The Braggs & Struttin' Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of

What is kaizen Kaizen is the Japanese term for continuous improvement. The kaizen concept was pioneered by in Japan by Toyota as daily challenge to all its to improve their pro

What is Cost unit While the cost centres assists in ascertaining costs by location, person, equipment, operation or process, cost unit is a unit of product, service or a combin

Elimination of non-value added activity JIT manufacturing can be described as a philosophy of management, dedicate to the elimination of waste. Waste is stated as anything whic

Time sheets are collected in a batch, and the information is manually keyed into the system. This data is now stored on a magnetic disk. An editing program is run, which verifies w

solutions for (POS) slow printing of sales tickets and unpredictable action of cash drawers. when credit approvals delayed the checkout process or when the computer was down, thus