"Calculate Re-order level from the following:
Consumption per week: 100-200 units
Delivery period: 14-28 days"
A. 5600 units
B. 800 units
C. 1400 units
D. 200 units
Answer: Option B
Solution(By Examveda Team)
Maximum consumption per week = 200 unit Maximum delivery time = 28 days = 4 week Re-order level = 200 x 4 = 800 units.Join The Discussion
Comments ( 2 )
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
its answer should be 28*200=5600
PLEASE PROVIDE VALID EXPLANATION IT WILL HELPS ME A LOT