This is sensible because gold has a carrying cost, in the form of storage, insurance, and financing, which is reflected in the time premium for its futures.
The accounting result of the " moving weighted average method" , which is the most accurate, can make the manager to know the immediate stock carrying cost with the most rapid speed.
He discovered that it cost less to make small batches, since making small batches eliminated the carrying costs of huge inventories required by mass production techniques.
charge of capital; carrying cost (of capital):the interest on debit Balances.
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