Cost of Inventory = inventory x interest rate
interest cost of inventory reflects the interest
associated with holding inventory.
Insurance, storage, theft and obsolescence costs must
be added to the interest cost of inventory when
determining the total inventory holding costs.
The interest cost of inventory is included in the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
calculation, charts and explanations of each ratio.
The interest cost of inventory is listed in our other
|The interest cost of
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The Interest Cost of
Inventory may be included in our
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