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Forums › ACCA Forums › ACCA FM Financial Management Forums › Stocks Mgmt layout
Hi
What does OC + HC + PC stand for?
where did you find this give us more information on it mate
The tutor referred to it tonight on the chat
OC = Ordering Costs
HC = Holding Costs
PC = Purchase Costs
🙂
So it is related to EOQ formulae then…
Yes, it’s what you use when deciding between EOQ and larger order amounts needed for discounts to kick in.