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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Sep dec 2019. Question 1 a
Sir pleeease explain, why dont we take account for financing cost in cost of holding inventory?? like we take 3% of avg inventory or something?
ohh never mind sir, I got it, because currently theyre financing with long term whose finance cost we’re ignoring long term finance cost, and only when we hold more inevntory in ii and iii part, we;ll take account for overdraft finance as holding cost.
Thank youu
I am please that you have got it 🙂