Cost Ascertoir
et Ascertainment - Elements of Cost
19. XYZ company buys in lots of 500 boxes which is a 3 month supply:
or 300 boxes which is a 3 month supply. The cost per box is 125 and the
ordering cost IS150. The inventory carrying cost is estimated
entory carrying cost is estimated at 20% of unit value.
What is the total annual cost of the existing inventory policy?
How much money could be sau
* d be saved by employing the economic order quantity? (Ans: Saving by
adopting EOQ = 2,977)
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