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Management accounting 2022

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Question:

What are som quantitative considerations to make in relation to cost of stock and opportunity costs?

Author: Hjalmer Pedersen



Answer:

For instance, we might consider buying all stock in the beginning of the year or buy stock monthly. Multiple quantitative things to consider regarding this: - If we buy all stock in the beginning of the year, we lose interest on the money we would normally have in the bank. - We might be able to get a cheaper purchase price due to us buying more stock.


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