When Demand and Delivery Lead Time Are Known and Constant

question 30

Multiple Choice

When demand and delivery lead time are known and constant, daily demand = 8, purchase lead time = 5 days, and the purchase price = $20/unit, then the reorder point is:

• A) 2
• B) 13
• C) 32.
• D) 40.
• E) 56.

Understand the impact of stock transactions on the cash flow statement.

Analyze the effect of changes in inventory, receivables, and payables on cash flow from operations.

Interpret the information contained in the cash flow statement to assess the financial health of a company.

Understand the impact of treasury stock transactions on the cash flow statement.

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