Inventory Cost Consideration


0
1.Origin purchase consideration
2.Transportation cost.
(a)Origin  purchase means the buyer is responsible for freight cost and product risk when the product is in transit.
(b)Depending on the delivery terms, the buyer assumes full risk on inventory at the time of shipment.
(c)Depending on the payment terms, transit inventory would be a part of enterprise’s average inventory and therefore subject to an appropriate charge.
(d)Transportation cost must be added to purchase price to obtain an accurate assessment of the value of goods tied up in inventory.
•After the inventory is received, the amount invested in the product must be increased by transportation expenses.
•Thus, inventory carrying cost should be assessed on the combined cost of the product plus transportation.
Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to contact@bms.co.in.

Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to contact@bms.co.in.

8 Comments

Ask Us On WhatsApp
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format