Not only those costs, David, but modern business must account for the cost of
assets. I'm sure that inventory is considered current assets, but there will
be a notional cost nonetheless, I'm sure (an accountant will correct me on this
. . .)
In the late 90s the British Government decided that each department would have
to pay the cost of capital from its budget. So each department had to tot up
their total fixed assets, a major task in itself, and pay the cost of capital
each year. I believe that it's called resource accounting and budgeting (I'm
sure that the same accountant will correct me on this . . . ;-)).
Chris
On 15 Dec 13, at 04:53, David Thatcher <davidt@xxxxxxxxxxxxxxxxxxx> wrote:
> I can see the machinist's manager's view - I did a project management
> subject as part of my electronics associate diploma. Surplus inventory
> has to be housed (rent), lit, heated, dusted, counted, and interest paid
> on the $ used to buy it, or so the MBA says. Just In Time delivery
> looks best *on paper*...
--
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