- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Here’s the question:
‘each unit is bought in at a cost of $2.24 from supplier…..
The total holding cost is 10% per annum of the value of inventory held.’
How do you find the total holding cost?
(i.e. what is the value of inventory held?)I know you use Ch×Q/2 to find total holding cost. just not sure why value of inventory is related to the purchase cost of each unit.
Kind regards,
Hwan
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.