Cost A/cs - EOQ

780 views 4 replies

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


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details