Effect of Economic Order Quantity (EOQ) Inventory Measurement on Profitability of Top 100 Medium Enterprises in Kenya

• Author(s): Shibu Judith ; Rashid Fwamba ; Munir Muganda
• Paper ID: 1705151
• Page: 414-419
• Published Date: 27-10-2023
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 7 Issue 4 October-2023

Abstract

International Accounting standard 2 regulates how inventories can be accounted for at Lower of Cost (LOC) and Net Realizable Value (NRV) with an outline of acceptable methods of cost determination. This study examined effects of EOQ inventory measurement on Profitability of Top 100 Medium Enterprises in Kenya. Descriptive research design was adopted targeting 300 accountants and chief executive officers of the selected top 100 medium enterprises. Simple stratified random sampling was used to select 171 respondents. Questionnaires were used as data collection instruments and data analyzed using quantitative and qualitative methods. Reliability, normality and homoscedasticity tests were carried out to test the goodness of fit of the Pearson Product Moment Correlation Coefficient model. The findings of the study revealed that there is no significant effect of Economic Order Quantity (EOQ) inventory measurement on profitability of top 100 medium enterprises in Kenya. The study recommends adoption of international accounting standards by the medium enterprises in order to realize sustainable profits.

Keywords

Economic order, Inventory measurement, Lower of Cost, Net Realizable Value, Profitability.

Citations

IRE Journals:
Shibu Judith , Rashid Fwamba , Munir Muganda "Effect of Economic Order Quantity (EOQ) Inventory Measurement on Profitability of Top 100 Medium Enterprises in Kenya" Iconic Research And Engineering Journals Volume 7 Issue 4 2023 Page 414-419

IEEE:
Shibu Judith , Rashid Fwamba , Munir Muganda "Effect of Economic Order Quantity (EOQ) Inventory Measurement on Profitability of Top 100 Medium Enterprises in Kenya" Iconic Research And Engineering Journals, 7(4)