ECONOMIC ORDER QUANTITY Definition

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ECONOMIC ORDER QUANTITY is the order quantity that minimizes total inventory costs. A total inventory cost is the sum of ordering, carrying and stock-out costs.

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GUILDER is a currency of Netherlands, Netherlands Indies, Netherlands Antilles, and Suriname.

PERIOD COST is an expense that is not inventoriable; it is charged against sales revenues in the period in which the revenue is earned (e.g., SG&A is a period cost). Also called period expense.

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