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Inventory Carrying Cost Formula

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Inventory Carrying Cost refers to the expenses associated with holding and storing inventory over a certain period of time. Check FAQs
ICC=(TCCTIV)⋅100
ICC - Inventory Carrying Cost?TCC - Total Carrying Cost?TIV - Total Inventory Value?

Inventory Carrying Cost Example

With values
With units
Only example

Here is how the Inventory Carrying Cost equation looks like with Values.

Here is how the Inventory Carrying Cost equation looks like with Units.

Here is how the Inventory Carrying Cost equation looks like.

153.8462Edit=(300000Edit195000Edit)⋅100
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HomeIcon Home » Category Financial » Category Financial Accounting » Category Capital Budgeting » fx Inventory Carrying Cost

Inventory Carrying Cost Solution

Follow our step by step solution on how to calculate Inventory Carrying Cost?

FIRST Step Consider the formula
ICC=(TCCTIV)⋅100
Next Step Substitute values of Variables
∴ ICC=(300000195000)⋅100
Next Step Prepare to Evaluate
∴ ICC=(300000195000)⋅100
Next Step Evaluate
∴ICC=153.846153846154
LAST Step Rounding Answer
∴ICC=153.8462

Inventory Carrying Cost Formula Elements

Variables
Inventory Carrying Cost
Inventory Carrying Cost refers to the expenses associated with holding and storing inventory over a certain period of time.
Symbol: ICC
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Inventory Carrying CostOpen Variable
Total Carrying Cost
Total Carrying Cost refers to the total expenses associated with holding and storing inventory or assets over a certain period.
Symbol: TCC
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Total Carrying CostOpen Variable
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.
Symbol: TIV
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Total Inventory ValueOpen Variable

Other formulas in Capital Budgeting category

​Go Payback Period
PBP=Initial InvtCf
​Go Cost of Retained Earnings
CRE=(DPc)+g
​Go Cost of Debt
Rd=Int.E⋅(1-Tr)
​Go After-Tax Cost of Debt
ATCD=(Rf+CSP)⋅(1-Tr)

How to Evaluate Inventory Carrying Cost?

Inventory Carrying Cost evaluator uses Inventory Carrying Cost = (Total Carrying Cost/Total Inventory Value)*100 to evaluate 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 evaluate Inventory Carrying Cost using this online evaluator? To use this online evaluator for Inventory Carrying Cost, enter Total Carrying Cost (TCC) & Total Inventory Value (TIV) and hit the calculate button.

FAQs on Inventory Carrying Cost

What is the formula to find Inventory Carrying Cost?
The formula of Inventory Carrying Cost is expressed as Inventory Carrying Cost = (Total Carrying Cost/Total Inventory Value)*100. Here is an example- 153.8462 = (300000/195000)*100.
How to calculate Inventory Carrying Cost?
With Total Carrying Cost (TCC) & Total Inventory Value (TIV) we can find Inventory Carrying Cost using the formula - Inventory Carrying Cost = (Total Carrying Cost/Total Inventory Value)*100.
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