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How to Calculate Inventory Holding Costs

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Things You'll Need

Instructions

1

Sort through the receipts relating to inventory. Find any receipt that has to do with storage of inventory, such as storage rental and handling costs. This can also include any administrative costs like a warehouse clerk.
2

Find the amount and cost of spoiled or obsolete inventory. This is any inventory that was not sold and is no longer able to be sold to an outside party.
3

Add the receipts for storing the inventory and the total amount of spoiled or obsolete inventory. This is the holding costs or carrying costs of inventory.
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