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Inventory carrying cost and cost of not having it?
Inventory carrying cost is that cost which is incurred by company to stock the inventory while cost for not having inventory means that cost which company has to bear due to non availability of inventory like loss of sales or good sales opportunity loss cost etc.
Retail inventory or cost inventory?
retail inventory retail inventory retail inventory
What inventory cost methods is appropinate for a business who has inventorynunique what a relative small number of?
The inventory cost of a business inventory is poo
What is the different between expired cost and unexpired cost?
expired cost - benefit has been received unexpired cost- benefit may or may not be received
What is the difference between expired cost and unexpired cost?
expired cost - benefit has been received unexpired cost- benefit may or may not be received
Retail inventory or cost inventory?
retail inventory retail inventory retail inventory
Inventory carrying cost and cost of not having it?
Inventory carrying cost is that cost which is incurred by company to stock the inventory while cost for not having inventory means that cost which company has to bear due to non availability of inventory like loss of sales or good sales opportunity loss cost etc.
How do you calculate inventory carrying cost?
Inventory Carrying Rate: This can best be explained by the example below....1. Add up your annual Inventory Costs:Example:$800k = Storage$400k = Handling$600k = Obsolescence$800k = Damage$600k = Administrative$200k = Loss (pilferage etc)$3,400k Total 2. Divide the Inventory Costs by the Average Inventory Value:Example:$3,400k / $34,000k = 10% 3. Add up your:9% = Opportunity Cost of Capital (the return you could reasonably expect if you used the money elsewhere)4% = Insurance6% = Taxes19% 4. Add your percentages: 10% + 19% = 29%Your Inventory Carrying Rate = 29% ---------------------------------------------------------------------------------------------------------------------------------- Inventory Carrying Costs: Inventory Carrying Cost = Inventory Carrying Rate (see above) X Average Inventory Value Example: $9,860,000 = 29% X $34,000,000 Inventory Carrying Rate: This can best be explained by the example below....1. Add up your annual Inventory Costs:Example:$800k = Storage$400k = Handling$600k = Obsolescence$800k = Damage$600k = Administrative$200k = Loss (pilferage etc)$3,400k Total 2. Divide the Inventory Costs by the Average Inventory Value:Example:$3,400k / $34,000k = 10% 3. Add up your:9% = Opportunity Cost of Capital (the return you could reasonably expect if you used the money elsewhere)4% = Insurance6% = Taxes19% 4. Add your percentages: 10% + 19% = 29%Your Inventory Carrying Rate = 29% ---------------------------------------------------------------------------------------------------------------------------------- Inventory Carrying Costs: Inventory Carrying Cost = Inventory Carrying Rate (see above) X Average Inventory Value Example: $9,860,000 = 29% X $34,000,000
What inventory cost methods is appropinate for a business who has inventorynunique what a relative small number of?
The inventory cost of a business inventory is poo
What doe price have to do with inventory?
When goods are in inventory it means that they have to be kept somewhere, for example in a warehouse. There is a cost associated with keeping inventory because it takes up real estate that could be used for something else. It's not free. As a result, it is part of the "cost" of making the product available to the customer and affects price.
What is the different between expired cost and unexpired cost?
expired cost - benefit has been received unexpired cost- benefit may or may not be received
What is the difference between expired cost and unexpired cost?
expired cost - benefit has been received unexpired cost- benefit may or may not be received
What is the explanation for the various costs involved in inventory?
carrying cost, ordering cost or setup cost are major cost involved in inventory
What is inventory cost?
Inventory cost is the cost for making of saleable goods to customers and include following items Material cost labor cost overhead cost
Are period cost a part of inventory cost?
No, A period cost is not the part of inventory cost. Period cost must be charged in the period in whcih it is incurred.
Where could one get free inventory software?
You can find free inventory software on the internet. There are many old programs out there that their copyright has expired and you can download it free.
When the cost of inventory is rising which inventory cost flow method will produce the lowest amount of cost of goods sold?
LIFO
