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MRP inventory is usually a function of:
Ordinary Simple Interest
Interest calculated on the principal amount of a loan or deposit, based on a simple calculation without compounding.
360-Day Year
An accounting method where the year is assumed to have 360 days, simplifying interest calculation by using 30-day months.
Ordinary Simple Interest Rate
An interest rate calculation where interest is only earned on the original principal, not on accrued interest.
360-Day Year
An accounting practice that simplifies interest calculations by assuming a year has 360 days.
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