CS Cost and management accounting MATERIAL mcq exam formula



Posted on 10-05-2016        By ADMIN



CS Cost and management accounting MATERIAL mcq exam formula

1) Reorder level =Maximum usage * Maximum lead time

(Or) Minimum level+ (Average usage * Average Lead time)

2) Minimum level =Reorder level – (Average usage * Average lead time)

3) Maximum level =Reorder level + Reorder quantity – (Minimum usage *

Minimum lead time)

4) Average level =Minimum level +Maximum level (or)

2

Minimum level + ½Reorder quantity

5) Danger level(or) safety stock level

=Minimum usage *Minimum lead time (preferred)

(or) Average usage* Average lead time

(or) Average usage* Lead time for emergency purposes



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