Inventory Carrying Costs


DOS

Joined
Aug 28, 2009
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I've been asked what I think about burdening our raw material and finished good inventory for carrying costs. These costs are already included in overhead, but what if I pulled them out and assigned them directly to the cost of inventory on hand. Stands to reason that why should a product that sits on the shelf for 1 day be assigned the same amount of overhead as the unit that sits on the shelf for 1 month?
 
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