Costs Which Implied In Inventory

Inventory is material or a goods kept to be used fulfills specific-purpose. Inventory earns is in the form of raw material, benefactor material, goods in process and finished goods. As one of important asset of management, company of inventory also obtains attention from management. Without inventory at all is not good and inventory a lot of also that is not good. Why not good? its(the answer not other expense of inventory,
element of Cost which there is in inventory is classified to become three. Firstly, expense of give an order. Secondly, stock holding cost. Third, inventory shortage cost. Expense of give an order released to be related of give an order activity of material or goods since give an order posting of until available in bond. In activity of production, expense of this give an order called as set up costs or cost to prepare manufacture process machines from a production plan. Besides expense of give, an order in stock also consists in stock holding cost. Which included in stock holding cost between of warehouse rent, warehousing docketing fee, warehousing executor salary, expense of electrics? Stock holding cost in it’s(the existence earns as percentage from mean per year and dollar per year per goods unit. While this inventory shortage cost arises as result of inexistence of inventory when required, This non inventory shortage cost real cost but a losing time is including in it because production process desisted from because there is no inventory in process, addition docketing fee, delays it demand, even blurry customer? client, Expense of give an order, stock holding cost, inventory shortage cost consists in inventory.