Re-ordering level = ……………………. X Maximum re-order period

Related MCQs

• …………………represents that quantity of material which is normally ordered when a particular material reaches reordering level.
• If maximum consumption is 300 units per day; minimum consumption is 200 units per day; and re-order period is 8 to 10 days, then what will be the re-order level?
• If re-ordering level is 450 units while consumption of materials are 25-27 units and materials are received within 4-6 weeks, the minimum level will be
• Which of the following is / are true with regard to the period of budget? i) the budget period depends on the nature of industry ii) master budget is prepared annually while functional budget may be for different periods iii) Basic budget is the long term budget
• Inventory turnover ratio = Cost of inventory consumed during the period ÷ Cost of ……………………held during the period
• Inventory turnover ratio = Cost of …………………..during the period ÷ Cost of average inventory held during the period.
• …………………is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period.
• Re-ordering level = Maximum consumption x …………………………
• Which of the following costs will vary directly with the level of production
• When a flexible budget is used a decrease in the actual production level within a relevant range would