Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA MA

Need explanation

PFPeer Far6y ago
One of holding costs of inventory includes interest on capital tied up in inventory. Please explain what it is.
John MoffatJohn MoffatTutor6y ago#1
I explain this in my free lectures!!!! The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well. Buying inventory costs money. The money spent either has to be borrowed (and therefore interest has to be paid) or uses spare cash which otherwise could have been invested and have been earning interest.
Sign in to reply to this topic.