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June 2025 ACCA Exams

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ACCA F2 Inventory Control (part c) – Economic Batch Quantity

VIVA

ACCA F2 / FIA FMA lectures Download ACCA F2 notes


Reader Interactions

Comments

  1. gabrielle says

    April 2, 2013 at 2:05 am

    Re-order level and ‘safety’ inventories??? please…

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    • John Moffat says

      April 2, 2013 at 8:35 am

      What about them?

      If you look at the revision lecture on inventory control you will find an explanation of them there.

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  2. rishman says

    January 29, 2013 at 6:30 pm

    Hello John

    Wrt to EBQ can we use this for just in time delivery sort of situation?

    Thanks

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    • John Moffat says

      April 2, 2013 at 8:33 am

      No – it is different than JIT.

      There are two main reasons. One is that EBQ assumes that we order in fixed quantities at fixed intervals, whereas JIT assumes that we order as needed. Second it that the main focus of JIT is on quality and the costs involved with quality are impossible to quantify.

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  3. tdcc says

    January 28, 2013 at 8:55 am

    These examples are not included in he corse notes that i have. Where cani find them

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    • John Moffat says

      April 2, 2013 at 8:28 am

      Try looking on pages 27 and 28 of our Course Notes! (I assume that you have downloaded our course notes?)

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  4. priyanair says

    January 17, 2013 at 2:11 pm

    Sir, Could u please tell how the average inventory ebq/2(1-d/r) derived. where should i refer?

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    • John Moffat says

      January 18, 2013 at 12:30 pm

      If you are happy with differentiation then it is fairly easy to derive the formula for the EBQ and for the average inventory.
      However deriving it is excluded from the syllabus (and will take too long to type out on here).
      The derivation might be in some of the approved study texts (although probably not because it is not in the syllabus).

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      • priyanair says

        January 21, 2013 at 6:02 pm

        Sir could u please suggest me a good book for Financial management? I luv this subject. and nw after having viewed ur lectures im evem more impressed.
        Thanks in advance

      • priyanair says

        January 21, 2013 at 6:08 pm

        wrt EOQ formula even with out differenciation i could derive.
        @ EOQ HOLDING COST = ORDERING COST
        AVG INVENTORY*HC PER UNIT PER ANNUM = NO.OF ORDERS * OC
        EOQ/2 * HC= DD/EOQ *OC
        EOQ* EOQ=2 *DD*OC/HC
        EOQ=ROOT OF 2*DD*OC/HC

        LYK THIS CANT WE DERIVE EBQ. FOR ME THE DOUBT IS WAT SHOULD BE AVD INVENTORY IN EBQ SCENARIO?

      • John Moffat says

        April 2, 2013 at 8:26 am

        This is not a derivation of the equation – it is assuming that total holding cost will equal total order cost at the optimum. Although this is the case, you have not proved it!

  5. tila says

    October 24, 2012 at 2:13 am

    Thanks again. You make it seems so much easier.

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  6. daggersteve says

    October 13, 2012 at 6:44 pm

    These examples are not in the study notes, is that correct or have they been missed out?

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  7. accakeisha says

    August 23, 2012 at 2:01 pm

    i love OT but i don’t think i am studying from the right text book.Can anyone tell me the name of the textbook? mine is from the BPP Learning Media

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    • MikeLittle says

      August 23, 2012 at 2:26 pm

      @accakeisha, Hi

      It’s not a text book – it’s the down-loadable course notes which you’ll find on this site

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  8. takhayyal says

    August 15, 2012 at 7:41 pm

    i really hate it when i realize why i didnt start studying before from opentuition and would have saved time and definitely pass my exams too. Really helpful lectures.
    Love opentuition

    Saify

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  9. johncena says

    May 17, 2012 at 2:35 am

    blessings!!!

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  10. anomith says

    April 9, 2012 at 12:44 pm

    Admin,is it too late to start study for the june sitting for the F2/FMA exam?

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    • allamardneket4 says

      April 16, 2012 at 8:48 am

      @anomith, i m STArting frm today ?? 😀

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    • eldartaurus says

      May 17, 2012 at 8:49 pm

      @anomith, You may take an exam of F2 in CBE center any time around year.

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  11. mqasimniazi says

    April 8, 2012 at 3:05 pm

    thanks OT…

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  12. ikay says

    April 4, 2012 at 5:22 pm

    i wonder why i didnt start immediately…
    the lectures are soooooo goood.. and easy to understand.
    thx sooo much open t.

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  13. startlet says

    April 3, 2012 at 3:03 am

    thank u very much

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  14. tcol says

    March 24, 2012 at 11:51 pm

    This has been good easy to understand nice thank you

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  15. steph5482 says

    February 14, 2012 at 3:46 pm

    as previously stated the lectures are really helpful and understandable

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  16. idil23 says

    February 9, 2012 at 7:17 pm

    Great lecture. Many thanks

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  17. miked2107 says

    December 31, 2011 at 1:57 pm

    thank you so very much

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  18. rissalewis says

    November 17, 2011 at 5:00 pm

    was really helpful. clear and concise

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  19. marocaine says

    September 7, 2011 at 12:18 pm

    very good and easy to understand

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  20. sahilkarwar says

    June 14, 2011 at 3:38 pm

    this is great

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