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Material costing

Costing

Explain this question why they are not using the formula purchase Cost + ordering cost + carrying cost??

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Devisree

Devisree

CMA Inter

0

26-Jan-24 00:02

128

Answers (6)

Best Answer

The formula given by you is relevant for calculating total costs in eoq calculation scenario based questions. This question is simply asking what is the cost of purchase. In your formula there are 3 elements cost of purchase+ ordering cost + carrying cost.. This question is based on calculation of what is cost of purchase


Pranay Mehta

Pranay Mehta

Faculty

27-Jan-24 09:56

Question is what is purchase cost


Sai Prasanna Ch

Sai Prasanna Ch

CA Inter

20K+

27-Jan-24 10:52

Please share your answer


Pranay Mehta

Pranay Mehta

Faculty

29-Jan-24 21:08

Here stores overhead is added to find material cost issued to production This means that all the purchased quantity is stored and issued to production. Am I right? This is the possible scenario that can be asked or else there is any other possibility to change the question and ask ??


Thread Starter

Devisree

Devisree

CMA Inter

0

29-Jan-24 22:20

We are just following the instructions given in the question. Kindly read the question again carefully. Different questions may require different computations.


Pranay Mehta

Pranay Mehta

Faculty

30-Jan-24 10:18

Ok


Thread Starter

Devisree

Devisree

CMA Inter

0

01-Feb-24 14:07

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