If the Lead Time for Garage Doors Is 2 Weeks

question 41

Multiple Choice

If the lead time for garage doors is 2 weeks and you sell 100 doors per week and you always want at least 20 doors in stock, what is the Reorder Point?

• A) 220
• B) 320
• C) 420
• D) 20
• E) 40

---

Definitions:

Depreciation Expense

The portion of a fixed asset's cost allocated to expense across its useful life, reflecting the asset's consumption or decline in value.

Straight-Line

An approach where the expense of an asset is uniformly allocated across its lifespan to calculate depreciation.

Double-Declining-Balance

A depreciation technique that increases the standard rate of depreciation twofold, thus diminishing an asset's value at a faster pace.

Units-of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or hours it operates.