Menu
costing
how the inverse relationship between order size and order cost
Replies (1)
Eg. Everytime you place an order (any quantity, 1 unit or 1000 units) there is a cost of RS. 50 per order.
If your annual requirement is, say, 12 units, you have 2 choices
1. Order 1 unit at a time, i.e. ordering cost 12orders x50=600
2. Order 6 units at once, i.e. 2 orders x 50 = 100
So bigger the order size, lesser the ordering cost.
If your annual requirement is, say, 12 units, you have 2 choices
1. Order 1 unit at a time, i.e. ordering cost 12orders x50=600
2. Order 6 units at once, i.e. 2 orders x 50 = 100
So bigger the order size, lesser the ordering cost.
Recent Topics :
- Practical queries on buy back of shares
- Any faculty recommendations for latest batch recor
- FAI & FAST-DS 2026 query
- Is GST registration mandatory in this case
- Buying a residential flat in Goa: should my wife b
- Income tax filling
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
Related Topics :
CAclubindia
