Which of the Following Helps to Determine the Reorder Point

question 24

Multiple Choice

Which of the following helps to determine the reorder point of an item?

• A)The rate of use
• B)The lead time
• C)Automatic shipments
• D)Both a and b

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Definitions:

Accelerated Depreciation

A method of depreciation that allows a business to allocate larger portions of the cost of an asset to earlier years of its useful life.

Financing Costs

Expenses a company bears to finance its operations, including interest payments on debt, and costs associated with issuing new stock or debt.

Net Working Capital Requirement

The amount of current assets a company needs minus its current liabilities to continue its operations smoothly.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, representing the percentage of tax applied to your income for each tax bracket in which you qualify.