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If You Have Total Annual Cost (TAC),total Annual Setup Cost

question 65

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If you have total annual cost (TAC) ,total annual setup cost (TASC) ,total annual holding cost (TAHC) ,and total annual materials purchase cost (TAMPC) ,then you can calculate total annual stock-out cost (TASOC) by this formula.


Definitions:

Accounts Receivable

Money owed to a company by customers for products or services that have been delivered or used but not yet paid for.

Unearned Sales Revenue

Money received by a company for goods or services yet to be delivered or performed.

Depreciable Asset

An asset subject to depreciation, representing the decline in value over time due to use, wear and tear, or obsolescence.

Investing Activities

Financial activities related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

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