Re:The Cost Center Trap
by noir_lord on Monday November 20, 2017 @02:59PM
(#15742716)
Not to mention K-Factor (carrying cost) and that 200K in stock sat in your yard is 200K you aren't earning interest on/able to re-invest into you business.
It's a double whammy, you pay (in terms of utilities, rent etc) to hold stock that means you can't use the money elsewhere and for a lot of stock you also have depreciation (though I work for a company that makes stone products so at least our raw materials don't expire).
It's a double whammy, you pay (in terms of utilities, rent etc) to hold stock that means you can't use the money elsewhere and for a lot of stock you also have depreciation (though I work for a company that makes stone products so at least our raw materials don't expire).