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Cost accounting - e.o.q.

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Accountant
310 Points Posted on 30 December 2011

Why do we consider Average Inventory while calculating the Carrying Cost for EOQ computatiions ? Please clarify.

Thanks.

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On 30 December 2011 at 12:16 Report
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CA FINAL Student
429 Points Posted on 30 December 2011
It is mainly for how much stock is always in your godown and the best practice to ascertain that Average inventory method to be followed.
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On 30 December 2011 at 12:27
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Accountant
310 Points Posted on 30 December 2011

Thank you Sir.

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On 30 December 2011 at 13:57
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articled trainee
1477 Points Posted on 31 December 2011

thank you sir 

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On 31 December 2011 at 18:13


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