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Average Inventory
An accounting metric that estimates the value or quantity of a company's inventory over a specified time period.
Carrying Cost
Carrying cost refers to the total cost of holding inventory, including storage, insurance, taxes, opportunity costs, and depreciation.
Order Cost
The administrative and logistical expenses associated with making and processing an order for goods or services.
Economic Order Quantity
An inventory management formula that determines the ideal order size to minimize the costs of holding and ordering inventory.
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