Total inventory costs formula , Managerial Accounting

Assignment Help:

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


Related Discussions:- Total inventory costs formula

Multiple products, differentiate between multiple product, selling product ...

differentiate between multiple product, selling product and margin managent

Bills of exchange, A bill is explained as an unconditional order in writing...

A bill is explained as an unconditional order in writing, addressed through one person to the other, signed through the person providing it, requiring the person to whom it is addr

What is replacement cost, Replacement cost It is the cost of replacing ...

Replacement cost It is the cost of replacing a material or asset, by purchase from the current market. If an X material was originally purchased @ Rs. 250 per Kg. And know i

Which of the following costs is an example of a cost, Which of the followin...

Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

Marginal costing, marginal costing decision making assignment questions

marginal costing decision making assignment questions

HELP , ) Allgood Inc. has fixed costs of $480,000. It has a unit selling pr...

) Allgood Inc. has fixed costs of $480,000. It has a unit selling price of $6, unit variable cost of $4.50, and a target net income of $1,500,000. HOW TO COMPUTE

State budgetary control, State Budgetary Control A budget is a quantita...

State Budgetary Control A budget is a quantitative expression of a plan of action relating to the forthcoming budget period. It represents a written operational plan of managem

Selective inventory management, Selective Inventory Management The inve...

Selective Inventory Management The inventory of an industrial firm generally comprises thousands of items with diverse prices, usage and lead time, as well as procurement and/o

Quick Question About WACC (Weighted Average Cost of Capital), when assessin...

when assessing Market Value of common stock, is the "market value" the market value when the company sold the stock or the current market value?

Explain phases of life cycle of a product, Q. Explain Phases of life cycle ...

Q. Explain Phases of life cycle of a product? Every product move through a life cycle having five phases as shown in figure and they are 1) Pricing during introduction 2)

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd