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

Inappropriate standards (or targets): This is a problem arising from deficiencies in planning. If not enough time and resources are devoted to setting accurate standards in th

What is the Scope of Waste heat boilers This specification covers the minimum requirements for the design, material selections, fabrication, testing and inspection of shop- / o

find full-cost& variable cost using transfer pricing method

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 What is the Meaning Cos

Question:   (a) For a business annual sales are Rs 50,000 and variable expenses are Rs 35,000 and fixed expenses are Rs 25,000. The owner wants to earn at least Rs 5,000 as pro

Risk seeking:  A risk seeker is a decision maker who is concerned in the best likely outcome no matter how small the chance that they might take place i.e. he takes high risks

Private sector companies have multiple stakeholders who are likely to have divergent interests.( five stakeholder groups and  discuss their financial and other objectives).

Question 1 The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. Sundry Debtors

Winner says, "It is clear that in decades to come a great many things like telephone answer machines and automatic bank tellers will become, in effect, members of our society." Mor