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Define the inventory procurement cost and inventory carrying cost.
Inventory Procurement Cost and Inventory Carrying Cost:
Inventory is a detailed list of such movable items that are essential to manufacture a product and to keep the equipment and machinery into good working order. Procurement costs reduce as the order quantity rises. Carrying costs are mostly directly proportional to the order size or order quantity or lot size.
What do you mean by variable costs? Variable costs conversely, tend to vary directly along with the volume of output. Illustrations of variable cost are as given below: direct
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