Effect of Economic Order Quantity (EOQ) Inventory Measurement on Profitability of Top 100 Medium Enterprises in Kenya
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)
About IRE Journals
IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
Important Links
For Authors
Volume 7:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 6:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 5:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 4:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 3:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12