## Inventory Carrying Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
Inventory Carrying Cost = (Total Carrying Cost/Total Inventory Value)*100
ICC = (TCC/TIV)*100
This formula uses 3 Variables
Variables Used
Inventory Carrying Cost - Inventory Carrying Cost refers to the expenses associated with holding and storing inventory over a certain period of time.
Total Carrying Cost - Total Carrying Cost refers to the total expenses associated with holding and storing inventory or assets over a certain period.
Total Inventory Value - Total Inventory Value refers to the total monetary worth of all the inventory items held by a business at a given point in time.
STEP 1: Convert Input(s) to Base Unit
Total Carrying Cost: 300000 --> No Conversion Required
Total Inventory Value: 195000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
ICC = (TCC/TIV)*100 --> (300000/195000)*100
Evaluating ... ...
ICC = 153.846153846154
STEP 3: Convert Result to Output's Unit
153.846153846154 --> No Conversion Required
153.846153846154 153.8462 <-- Inventory Carrying Cost
(Calculation completed in 00.004 seconds)
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Created by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
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Satyawati College (DU), New Delhi
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## Inventory Carrying Cost Formula

Inventory Carrying Cost = (Total Carrying Cost/Total Inventory Value)*100
ICC = (TCC/TIV)*100

## What is Inventory Carrying Cost?

Inventory carrying cost, often referred to simply as carrying cost, encompasses all the expenses associated with holding and managing inventory within a business. It includes various overhead costs incurred throughout the inventory's lifecycle, from procurement to storage and sale. These costs typically encompass warehousing expenses, such as rent, utilities, insurance, and maintenance, as well as the opportunity cost of tying up capital in inventory rather than investing it elsewhere. Moreover, inventory carrying cost may also encompass depreciation, obsolescence, shrinkage, and the financial risks associated with excess or obsolete inventory. Businesses carefully monitor and manage their inventory carrying costs as part of their overall inventory management strategy to optimize efficiency, profitability, and cash flow.

## How to Calculate Inventory Carrying Cost?

Inventory Carrying Cost calculator uses Inventory Carrying Cost = (Total Carrying Cost/Total Inventory Value)*100 to calculate the Inventory Carrying Cost, The Inventory Carrying Cost is an accounting term that identifies all business expenses related to holding and storing unsold goods. Inventory Carrying Cost is denoted by ICC symbol.

How to calculate Inventory Carrying Cost using this online calculator? To use this online calculator for Inventory Carrying Cost, enter Total Carrying Cost (TCC) & Total Inventory Value (TIV) and hit the calculate button. Here is how the Inventory Carrying Cost calculation can be explained with given input values -> 153.8462 = (300000/195000)*100.

### FAQ

What is Inventory Carrying Cost?
The Inventory Carrying Cost is an accounting term that identifies all business expenses related to holding and storing unsold goods and is represented as ICC = (TCC/TIV)*100 or Inventory Carrying Cost = (Total Carrying Cost/Total Inventory Value)*100. Total Carrying Cost refers to the total expenses associated with holding and storing inventory or assets over a certain period & Total Inventory Value refers to the total monetary worth of all the inventory items held by a business at a given point in time.
How to calculate Inventory Carrying Cost?
The Inventory Carrying Cost is an accounting term that identifies all business expenses related to holding and storing unsold goods is calculated using Inventory Carrying Cost = (Total Carrying Cost/Total Inventory Value)*100. To calculate Inventory Carrying Cost, you need Total Carrying Cost (TCC) & Total Inventory Value (TIV). With our tool, you need to enter the respective value for Total Carrying Cost & Total Inventory Value and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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