Economic Order Quantity (EOQ)
Economic Order Quantity (EOQ) is a formula used in inventory management to determine the optimal number of units to order at one time. The goal of EOQ is to minimize the total cost associated with ordering and holding inventory. This model helps businesses balance ordering costs (expenses related to placing and receiving orders) and holding […]
What is Straight Line Depreciation?
Straight line depreciation is one of the easiest methods for spreading the cost of an asset over time. In business, understanding how assets lose value is crucial for accurate financial reporting. With this method, you can evenly distribute the cost of an asset across its useful life. It’s perfect for assets that wear down consistently, […]
