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The Aggregate effects doctrine, Cumulative effects doctrine, or substantial effects doctrine is a legal doctrine in United States federal law. The AED permits extension of the regulation of interstate commerce into any action which affects interstate commerce only when aggregated with other actions.
The standard technique requires that inventory be valued at the standard cost of each unit; that is, the usual cost per unit at the normal level of output and efficiency. The retail technique values the inventory by taking its sales value and then reducing it by the relevant gross profit margin.
An item whose inventory is sold (turns over) once a year has higher holding cost than one that turns over twice, or three times, or more in that time. Stock turnover also indicates the briskness of the business. The purpose of increasing inventory turns is to reduce inventory for three reasons. Increasing inventory turns reduces holding cost ...
If the inventory has decreased in value below historical cost, then its carrying value is reduced and reported on the balance sheet. The criterion for reporting this is the current market value . Any loss resulting from the decline in the value of inventory is charged to " cost of goods sold " (COGS) if non-material, or "loss on the reduction ...
The concept of inventory, stock or work in process (or work in progress) has been extended from manufacturing systems to service businesses [1] [2] [3] and projects, [4] by generalizing the definition to be "all work within the process of production—all work that is or has occurred prior to the completion of production". In the context of a ...
Aggregate planning is a marketing activity that does an aggregate plan for the production process, in advance of 3 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total cost of operations of the organization is kept to the minimum over that period.
Using that approach, the SEC required that a broker-dealer subject to the Basic Method maintain "net capital" equal to at least 6-2/3% of its "aggregate indebtedness." This is commonly referred to as a 15 to 1 leverage limit, because it meant "aggregate indebtedness" could not be more than 15 times the amount of "net capital."
The size of the safety stock depends on the type of inventory policy in effect. An inventory node is supplied from a "source" which fulfills orders for the considered product after a certain replenishment lead time. In a periodic inventory policy, the inventory level is checked periodically (such as once a month) and an order is placed at that ...