cost and management accounting mcq exam formula

Posted on 10-05-2016        By ADMIN

cost and management accounting mcq exam formula MATERIAL 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 + ½ Reorder quantity 5) Danger level (or) safety stock level EOQ (Economic Order Quantity - ) = v2AO/C Associated cost = Buying cost pa + Carrying cost pa Average Inventory Inventory Turn over Ratio Total Inventory cost Cost price method:- a) Specific price method b) First in First Out method (FIFO) c) Last in First Out method (LIFO) d) Base stock method ABC Analysis (or) Pareto Analysis

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