Having some doubt regrding the Working capital arithematic 2 in Revision Notes of OT..
to calculate the holding cost the discount of 1% is used regardless of the order size.. Why dont we use the purchase price of that level of ordering the quantitiy?
Ask the Tutor ACCA FM
F9 revision notes
11y ago#1It is a typing mistake in the workings - sorry.
If you calculate yourself the total holding costs you will find that the totals are correct in the answer and do take account of the higher discounts.
Sign into reply to this topic.