222

$show=home

Founder of Accounting Education

Online Accounting Course 

Achieve one of the highest distinctions in the accounting management profession: Become a Online Accountant. As an Online Accountant, you will have the knowledge and the skills to thrive in the competitive accounting industry.

The Online Accounting course gives you expertise and real-world skills in accounting analysis. Join more than 100,000 professionals who have been recognized globally for their commitment to ethics and professionalism.











$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Latest $type=blogging$count=10$author=hide$comment=hide$label=hide$show=home$date=hide

Maximum Level of Inventory

Maximum level of inventory is maximum  quantity of material which have to keep in store. We should not keep the stock more than maximum level because if we keep more stock than maximum level it will increase the cost of capital because we do not need the stock more than maximum level. Excess stock than maximum level will increase the cost of storing.


Following are the factors which are kept in mind when we take the decision of maximum level of inventory.

Factor Affecting Maximum Level of Inventory 

1. Rate of Consumption 

If we consume the inventory with fast rate of consumption, we need more quantity. So, our maximum level of inventory should be high.

2. Rate of Deterioration 

If there are more rate of deterioration which may normal or abnormal, we should keep the stock at low quantity.

3. Requirements in Production 

If we have high demand and requirement in production, we should buy stock at large quantity. With this, we can get discount facility. We should also compare this discount with storage cost. If discount is more than storage cost, it will be good, if we keep large volume of stock.

4. Storage Cost 

Storage cost is also big factor for deciding maximum level of inventory. If it is very low, we can keep excess stock from maximum level.

5. Insurance Cost 

There is the risk of loss due to fire or any other reason. If insurance cost is very low, we can keep more stock than maximum level of inventory.

6. Availability of Storage Space 

If our storage space is empty, we can use for storing excess quantity of stock than maximum level.

Formula of Maximum Level of Inventory 


Reorder level + Economic Order quantity − (Minimum rate of usage × Minimum lead time)

For Example 


Minimum Consumption 1000 per day

Delivery Time = 8 to 10 days

Reorder Level = 20000 units

Economic Order Quantity = 15000 units

Maximum Stock level = Reorder Level + EOQ - ( Minimum consumption X minimum reorder period)

= 20000 + 15000 - ( 1000 X 8)

= 35000 - 8000

= 27000 units



http://www.krantikari.org/2016/09/cost-accounting-ebook.html

COMMENTS

$hide=home

Name

access,2,account,87,accountant,93,Accounting,682,accounting definitions,99,accounting ebook,3,Accounting education,85,accounting procedure,2,accounting process outsourcing,2,Accounting Software,54,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,announcements,62,Annuity,2,assets,52,audit,46,auditing,41,Australia,2,B.Com.,22,balance sheet,84,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,2,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,20,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,247,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,4,Financial,134,financial accounting,144,Financial Statements,1,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,10,income,17,income statement,17,Income Tax,7,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,41,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,139,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,15,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,5,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,13,purchase,9,puzzles,2,quickbooks,2,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,218,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,99,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,8,VAT,22,Video,35,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Maximum Level of Inventory
Maximum Level of Inventory
https://1.bp.blogspot.com/-Q06VwgtSFpk/WU7dnoSPl-I/AAAAAAAAVas/2raH4vBL9E8l9tnbyyR9q17Q--qtBO7vgCLcBGAs/s1600/cost%2Baccounting%2Bebook%2Bpromotion.PNG
https://1.bp.blogspot.com/-Q06VwgtSFpk/WU7dnoSPl-I/AAAAAAAAVas/2raH4vBL9E8l9tnbyyR9q17Q--qtBO7vgCLcBGAs/s72-c/cost%2Baccounting%2Bebook%2Bpromotion.PNG
Accounting Education
https://www.svtuition.org/2012/09/maximum-level-of-inventory.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2012/09/maximum-level-of-inventory.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy