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Forums › ACCA Forums › ACCA FM Financial Management Forums › FM CH 4
Hi sir
I can’t find ask tutor so I post here my question
If have safety inventory we need to add on in holding cost
Eg if safety inventory 100
Holding cost = 500÷ 2 =250 ×(10%×12)+(100×10%×12)
If have 1 % discount
Therefore holding cost =500÷2 =250×(99%×12)+(100×99%×12)
Is this correct.
Pls reply ASAP.
I am surprised that you cannot find the Ask the Tutor Forum – there is a link at the top of this page!
You do need to add on the safety inventory. However I cannot check your figures because I have not seen the question!