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
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details