In order to avoid the stoppage of production due to shortage of material _______.
A. maximum stock level is maintained
B. minimum stock level is maintained
C. re-order level is maintained
D. average stock level is maintained
Answer: Option B
Solution(By Examveda Team)
In order to avoid the stoppage of production due to shortage of material minimum stock level is maintained. The minimum level of stock is a certain predetermined minimum quantity of raw materials or merchandise inventory which should always be available in stock in the normal course of business.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
Join The Discussion