Practice mode Accounting

The minimum stock level of a raw material is 4,000 units and its average stock level is 9,000 units. What is the reorder quantity?

Correct answer A. 10,000 units

Explanation

Average stock equals minimum stock plus half the reorder quantity, so 9,000 equals 4,000 plus ROQ divided by 2, giving a reorder quantity of 10,000 units.

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The minimum stock level of a raw material is 4,000 units and its average stock level is 9,000 units. What is the reorder quantity?

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The minimum stock level of a raw material is 4,000 units and its average stock level is 9,000 units. What is the reorder quantity?

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