Question

Examine the major scope of cost accounting. Find out the (a) minimum stock level, (b) maximum stock level and (c) ordering level (d) danger level from the following particulars: Minimum consumption - 50 units per day Maximum consumption - 100 units per day Normal consumption -75 units per day Re-order quantity -1000 units Minimum period for receiving goods -6 days Maximum period for receiving goods -12 days Normal period for receiving goods -9 days

          Examine the major scope of cost accounting.
Find out the (a) minimum stock level, (b) maximum stock level and (c) ordering level (d) danger level from the following particulars:
Minimum consumption - 50 units per day
Maximum consumption - 100 units per day
Normal consumption -75 units per day
Re-order quantity -1000 units
Minimum period for receiving goods -6 days
Maximum period for receiving goods -12 days
Normal period for receiving goods -9 days

Examine the major scope of cost accounting.
Find out the (a) minimum stock level, (b) maximum stock level and (c) ordering level (d) danger level from the following particulars:
Minimum consumption - 50 units per day
Maximum consumption - 100 units per day
Normal consumption -75 units per day
Re-order quantity -1000 units
Minimum period for receiving goods -6 days
Maximum period for receiving goods -12 days
Normal period for receiving goods -9 days

Added by Jacqueline P.

Applied Calculus

Deborah Hughes-Hallett, Patti Frazer… 5th Edition

Chapter 4

Instant Answer

Solved by Expert Rabia Sarwar

06/04/2024

Step 1

If the stock reaches at this level, fresh order is placed. It is calculated as: Minimum Stock Level = Re-order Level – (Normal Consumption x Normal Re-order Period) Re-order Level = Maximum Consumption x Maximum Re-order Period So, Re-order Level = 100 Show more…

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