Vidyalelo
Commerce · Q119

Costing

Graduate and Post Graduate · Commerce · question 119

Q119

This is a level at which normal issue of material are stopped, but issued under special condition It is ________.

A.
maximum stock level
B.
minimum stock level
C.
danger level
Answer
D.
average stock level

Answer: Option C

Solution

Answer: Option C
Solution:
This is a level at which normal issue of material are stopped, but issued under special condition It is danger level. Danger level is a level of fixed usually below the minimum level. When the stock reaches danger level, an urgent action for purchase is initiated.