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Economic Order Quantity
This constitutes the quantity purchased of either raw materials or stocks which is considered most optimum. It is the quantity such minimizes both ordering costs and holding costs, like the quantity of purchase rises there is a reduction in ordering costs, however a raise in holding costs as demonstrate in the graph below as:
Net cost = Net ordering costs + Net holding costs
Net ordering costs = cost per order X no of orders in a period
Net holding cost = average stock quantity X holding cost per unit
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 Variable costs are those
Process Losses Most manufacturing processes result in several portion of the raw materials utilized not being transformed into a reliable half losses. These losses may take t
wont questions on it and a valuable answer
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The following information is available for the automotive division of Ford Motor Company for 2009. The company uses the LIFO inventory method.
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importance of marginal costing &standing costing
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