carrying cost


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Noun1.carrying cost - the opportunity cost of unproductive assets; the expense incurred by ownership
opportunity cost - cost in terms of foregoing alternatives
References in periodicals archive ?
An electric stove cost Taka 7,747 and the carrying cost from the ground floor to the top one cost Taka 6,650, the reports said adding the price of an electric iron was Taka 4,154 and the carrying cost Taka 2,945.
This step is intended to decrease the inventory carrying cost of dealers.
Goods sold on credit get converted to accounts receivables whose accumulation would result in accounts receivable carrying cost to the firm.
"The balance on the deferred generation amount any carrying cost shall be included in Meralco's generation charge for March 2014.
Two tax inventory methods, LIFO and uniform capitalization (UNICAP), provide opportunities to decrease the tax carrying cost of inventory and to improve cashflow in the face of these inventory trends.
The calculation below for a sample distribution company illustrates the need to account for the impact of financing inventory with debt and, in turn, to apply the correct cost of capital in estimating the inventory carrying cost.
Today, size, complexity and individual customer requirements generate other significant costs and investments critical for accurate analysis, such as freight, inventory carrying cost, HR support investment, display-ready pallet cost, "nuisance fees" and so on.
Philp says lower mortgage rates are also driving housing starts and the resale market; the average monthly carrying cost for 2002 is $815, which is the lowest figure since 1987 when it was $782.
The standard requires that the carrying cost be weighed against several benchmarks, including the quoted market price of the specific asset, an estimate based on prices of "similar" assets or an estimate based on a valuation technique, such as calculating the present value of the estimated future cash flow generated by the asset in question.
Specifically, the tax cost of the rules creates an additional inventory carrying cost. CPAs can help identify the incremental tax cost of holding inventory items and thus provide inventory planners with the information they need to make cost-efficient decisions.
Each pillow, the reports claimed, was bought for Tk 5,957, and its carrying cost from the shop to the building was at Tk 760.