How do You Calculate Inventory Holding Costs?

Answer

Inventory holding costs are calculated by determining the actual cost of the inventory. The cost of inventory is multiplied by the investment value as if you had not bought the inventory and invested the money.
2 Additional Answers
Ask.com Answer for: how do you calculate inventory holding costs
How to Calculate Inventory Holding Costs
Inventory holding costs are costs a firm has when keeping inventory. Companies often try to reduce the amount of inventory they have on hand to reduce inventory holding costs. The less time inventory is on hand, the less storage costs for the company and... More »
Difficulty: Moderately Easy
Source: www.ehow.com
To calculate inventory holding costs, determine the total amount spent in regards to the storage and handling of inventory. Then determine the total amount of obsolete inventory and spoilage. The total amount spent in storage and handling less obsolete and spoiled inventory is the inventory holding cost.
Q&A Related to "How do You Calculate Inventory Holding Costs?"
1. Sort through the receipts relating to inventory. Find any receipt that has to do with storage of inventory, such as storage rental and handling costs. This can also include any
http://www.ehow.com/how_7233049_calculate-inventor...
what is the role of ordering cost and carrying cost in calculating the EOQ. what is the role of ordering cost and carrying cost in calculating the EOQ.
http://wiki.answers.com/Q/What+is+low+carrying+cos...
The cost of inventory sold is calculated by adding the totals that are listed in question 2.
http://answers.yahoo.com/question/index?qid=201304...
Even I am not sure about the costing methods or algorithms and the calculations involved.. If you would be able to give me a pseudocode of the logic involved, I would be able to give
http://www.experts-exchange.com/Database/MySQL/Q_2...
Explore this Topic
Holding costs are what it costs to keep inventory in a certain place. Factors that go into holding cost include rent, payment for the inventory manager, and insurance ...
1. Obtain the cost of the inventory held. Assume inventory costs are $100,000. 2. Obtain the cost of storage, which includes the rent, utilities, insurance and ...
To calculate inventory turns by using the formula Inventory turns= Cost of Goods Sold / Average Inventory. The average inventory is calculated by dividing the ...
About -  Privacy -  AskEraser  -  Careers -  Ask Blog -  Mobile -  Help -  Feedback © 2014 Ask.com