Total inventory costs formula , Managerial Accounting

Total inventory costs formula

Total inventory costs will be as follows:

Total inventory costs = Purchase price cost + carrying costs + stock-out cost + order costs.

Total inventory costs = Purchase price costs + "normal~ carrying costs (Q/2 H) + Buffer Stock holding costs (B x H) + Stock-out costs + order costs.

Total inventory costs = D.C + Q/2.H + (B x H) + stock-out costs + D/Q.Co

Where:

D = Total annual demand
H = Holding costs per unit
B = Buffer stock
Q = EOQ

Posted Date: 12/6/2012 6:40:44 AM | Location : United States







Related Discussions:- Total inventory costs formula , Assignment Help, Ask Question on Total inventory costs formula , Get Answer, Expert's Help, Total inventory costs formula Discussions

Write discussion on Total inventory costs formula
Your posts are moderated
Related Questions
What are the Disadvantages of budgetary control 1) Uncertain future: the budgets are prepared for the future period. Despite best estimates made for the predictions may not

tha accountant''s approach to CVP ANALYSIS HAS BEEN CRITICISED IN THATIT DOES NOT DEAL WITH THE FOLLOWING; CHANGES IN PRODUCT MIX. WHY IS IT SO?

What is Sealed bid pricing Another from of competition oriented pricing is the sealed bid pricing. In a large number of projects, industrial marketing and marketing to the gove

The significant functions of a treasury department are as given below: a) Setting up corporate financial goals Financial strategies and aim Treasury and financial po

Define the Balanced Score Card? 1. Distinguish between standard control and budgetary costing. 2. Define the ‘Balanced Score Card? Explain the steps in implementing ‘Balance

One of the main deities of the financial manager is to keep a sound liquidity position for the firm hence the dues are settled as and while they mature. Separately from this the fi

Monitor Let's start by having you think about the controlling your car (aka "driving")! Your steering, acceleration, and braking are not the random things to be done; they are

The production department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the paint cans instead of purchas

how do i use least squares method to solve semi average problem?

if equipment will be depreciated on a straight-line depreciation basis over a five year period with an estimated residual value, what do I do with this information in a investment