Formula of inventory levels
Write down the formula of the following inventory levels?
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i) Re-order level ii) Maximum level iii) Minimum level iv) Danger level i) Re-order level = Maximum Lead Time x Minimum Lead Time ii) Maximum level = Reorder Level + Reorder Quantity – (Minimum Usage x Minimum Lead Time) iii) Minimum level = Reorder Level – (Normal Usage x Normal Lead Time) iv) Danger level = Maximum Level x Lead time for Emergency purchases.
Briefly explain the main stages for computing the total cost per unit under the absorption costing system.
Accounting Theory 7edition, by Godfrey J., Hodgson A., Tarca A., Hamilton J., and Holmes S. Chapter 2: Theory in Action 2.2 “Normative Theories of Investment” Chapter 3: Theory in Action 3.1 “Companies should come clean on the value of leases on their books” Chapter 5: Theory in A
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