A company produces a single product for which following data is available : Average production per week : 200 units Usage per unit : 10 Kgs. Re-order level : 8,000 Kgs. Delivery time required : 2 weeks The minimum level

CS Executive · Cost and Management Accounting · PYQS · December 2016
A company produces a single product for which following data is available : Average production per week : 200 units Usage per unit : 10 Kgs. Re-order level : 8,000 Kgs. Delivery time required : 2 weeks The minimum level of stock required will be —
(A) 3,000 Kgs.
(B) 5,000 Kgs.
(C) 4,000 Kgs.
(D) 2,500 Kgs.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Cost Accounting

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