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Certainly, our costing system is not accounting for our true costs. With our in-stock items comprising only 20% of our product line, the sales of non-stocked items must be a major driver in the total cost to sell items. It is proposed that the non-stock item costs be isolated and evaluated differently than the costs for in-stock items so that the true cost of completing a transaction can be accurately captured.
First, it is proposed that a distinction be made between the costs associate with the sales of in-stock items and non-stock items. For in-stock items, the cost driver is based on volume due to the lower cost (relative to non-stock items) of selling those items...
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