You are given the following information in respect of Material Y: Re-order Quantity : 360 units Re-order Period : 3 to 5 weeks Maximum Consumption : 90 units per week Normal Consumption : 60 units per week Minimum Consum

CS Executive · Cost and Management Accounting · PYQS · December 2020
You are given the following information in respect of Material Y: Re-order Quantity : 360 units Re-order Period : 3 to 5 weeks Maximum Consumption : 90 units per week Normal Consumption : 60 units per week Minimum Consumption : 30 units per week The maximum stock level would be :
(A) 810 units
(B) 720 units
(C) 690 units
(D) 960 units

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Material Costing

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