Multiple Choice Questions on Calculate Re order Level from information given below Consumption 200 units 400 units Re order Perio........... for SEBI Grade A ( Officer) Exam Preparation

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Multiple Choice Questions

Calculate Re order Level from information given below Consumption 200 units 400 units Re order Perio...........

Costing - Phase (I & II) Basics of Cost Control and Analysis
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    Calculate Re-order Level from information given below:

    Consumption: 200 units-400 units

    Re-order Period: 15 days- 30 days

    10,000 units

    Incorrect Answer

    12,000 units

    Correct Answer

    15,000 units

    Incorrect Answer

    30,000 units

    Incorrect Answer
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    Explanation:

    Reorder Level is the quantity level at which, if material in store reach, the order for future supply of material must be placed. At this point, a new order for purchase of material is placed.

    It is calculated as: Maximum Consumption (x) Maximum Reorder Period

    In given problem, Re-order level = 400 (x) 30= 12,000 units

    By: Vikas Goyal
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