Month February 2024

Carrying costs

Carrying costs

The cost incurred for maintaining a given level of inventory are called carrying costs. They includes storage ,insurance, taxes, deterioration and obsolesce. What is carrying costs? The cost incurred for maintaining a given level of inventory are called carrying cost.…

Sunk Costs

sunk costs

Sunk costs are cash outlay incurred in past . They are result of past decisions and cannot be changed by future decisions. Since they do not influence future decisions, they are irrelevant costs. Further they are unavoidable and irrecoverable historical…