The stores keeper should initiate a purchase requisition when stock reaches ________.
A. Average stock level
B. Minimum stock level
C. Maximum stock level
D. Re-order level
Answer: Option D
Solution(By Examveda Team)
The stores keeper should initiate a purchase requisition when stock reaches Re-order level. Reorder level (or reorder point) is the inventory level at which a company would place a new order or start a new manufacturing run.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
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