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Commerce · Q113

Costing

Graduate and Post Graduate · Commerce · question 113

Q113

Reorder level = ________.

A.
maximum level - minimum level
B.
maximum consumption X maximum reorder period
Answer
C.
minimum consumption x minimum reorder period
D.
normal consumption X normal reorder period

Answer: Option B

Solution

Answer: Option B
Solution:
Reorder level = maximum consumption X maximum reorder period.