The Average Demand for an Item Is 20 Units Per

question 12

Multiple Choice

The average demand for an item is 20 units per day,safety stock is 50 units,and lead time is four days,the reorder point will be:

• A)20
• B)50
• C)70
• D)80
• E)130

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Definitions:

Underapplied Overhead

A situation where the allocated overhead costs are less than the actual overhead costs incurred.

Cost of Goods Sold

The total cost directly associated with producing the goods that have been sold during a specific period.

Period End

The conclusion of an accounting period, at which time financial statements are prepared and financial activities are summarized.

Transfer

The movement of resources, products, or services from one part of an organization to another.