Product Costing
Inventory Carrying Costs            * Capital                                    * Insurance                              * Pilferage and Spoilage              * Obsolescence Costs                * Deterioration                           * Storage and Handling[1]
direct cost allocation to products
indirect cost allocation to product
-Standard versus actual costing
-Forward “what –if analysis”, for different cost attributes.
[1]
Enas refaat:
Costs result from the fact that the item is in stock.  It includes cost of money (capital) , deterioration, obsolescence, theft, insurance and storage costs.  These are real  costs which must be aacounted for.  The figured coted are typically but may vary slightly from country to country.
A Typical Holding Cost Element                                          Percentage of value
                                                                                                    of Inventroty Value       
Capital                                                                                         25%
Insurance                                                                                    1%
Pilferange and Spoilage                                                               2%
Obsolescence and Deterioration                                                 1%
Storage and handling                                                                   6%
TOTAL                                                                                         35%