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Forums › ACCA Forums › ACCA FM Financial Management Forums › Acca f9 working capital
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Today i have a paper in which there was a statement in the question that (holding cost excluding interest payement) and at last if question it was written that company has no cash in hand and have an overdraft at cost 3% interest…
My question is… that in solving such question should we use holding cost including interest?????
I assume you are asking about inventory control. If so then yes – the holding cost will include 3% of the purchase price per unit.
I do explain this in my free lectures.