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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Need explanation
One of holding costs of inventory includes interest on capital tied up in inventory. Please explain what it is.
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.
