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Management Accounting - Hansen Mowen CH19

Management Accounting - Hansen Mowen CH19

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Published by Gito Novhandra

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Categories:Types, Research
Published by: Gito Novhandra on Oct 06, 2011
Copyright:Attribution Non-commercial

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08/11/2014

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19
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1
 
 Inventory Management
 
CHAPTER
 
19
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2
 
1. Describe the traditional inventorymanagement model.2.Discuss JIT inventory management.3.Explain the theory of constraints, and tellhow it can be used to manage inventory.
Objectives
 
 
 After studying thischapter, you should be able to:
 
19
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3
 
Inventory Costs
1.
Ordering costs
are the costs of placing and receiving an order.2.
Setup costs
 are the costs of preparing equipment and facilitiesso they can be used to produce aparticular product or component.3.
Carrying costs
are the costs of carrying inventory.

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