Cost A/cs - EOQ

Hi,


While computing EOQ, why do we muluiply Carrying cost with 1/2 in solving Q. I always forgot to divide it and my answer comes wrong ? What is the logic behind this ? Pl help...

Regards,

Patricia

Mumbai

 

Replies (4)

while computing EOQ we divide d quantity as we r assuming that quantity will remain half in godown and half at factory. and carrying cost is for d godown quantity only.

said by sathil is correct but the term is we have to take only average stock. That's why we are using 1/2.

manjkadan is correct and sathil is entirely wrong

anuj its a logic of taking average stock and if m worng then pls tell wats d logic of taking average stock . dude ur learning  formules and m giving d perfect logic

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details