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Commerce · Q118

Costing

Graduate and Post Graduate · Commerce · question 118

Q118

This is a point at which the store keeper should initiate purchase requisition for fresh supply It is ________.

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

Answer: Option C

Solution

Answer: Option C
Solution:
This is a point at which the store keeper should initiate purchase requisition for fresh supply It is reorder level. Re-order level is a level of material at which the storekeeper should initiate the purchase requisition for fresh supplies. When the stock-in-hand comes down to the re-ordering level, it is an indication that an action should be taken for replenishment or purchase.